A Guide to Building a New Construction Home
Hello, friends! I just wanted to start by saying a big THANK YOU to everyone who has emailed us with questions on our new series BUILDING OUR DREAM HOME!
Several of you asked why we didn’t allow comments, and honestly, it’s all about response time for us. We want to be able to get back to you promptly and since we both work full-time and we are trying to finish up some outside projects in our free time, it just made sense to close the comments. But like many of you already figured out you can still reach us by email so please don’t hesitate to do that if you have any questions!
So now onto this post…
By the time Michael and I had purchased our little piece of property heaven, we were certain we had all our ducks in a row to build our dream home. After all, we had been planning for this day to come for 4+ years.
We had a thick ledger full of budget plans, designs, and bids from all the contractors we needed. We had locked in our General Contractor and had the green light from our bank that we were ready to go. Months before we had even started making purchases for the house like light fixtures, vanities, tile, and flooring.
And then our first roadblock came up.
Our GC backed out due to another client’s contract issue.
We were devastated. Without a GC we couldn’t move forward. Neither of us had any experience in General Contracting, nor did we have the time to invest in handling everything a GC is required to do.
Thankfully we talked to our main contractor and he agreed to take on some of the responsibilities of the GC, without pay but would need help.
This may all sound pretty easy but I’ll tell you right now. It was anything but.
So if you are considering building new construction sit back and get comfortable. This post is jam-packed with a lot of information but don’t worry. We will break it into two posts so we don’t overwhelm you.
Part One of our Guide: can you be a gc?
First off, what is a GC?
A general contractor is a person or company who oversees a construction project.
That is the simple answer.
In reality, there is so much more involved in what a general contractor does.
Here are some of the job duties that a normal GC will do:
- Permits and licenses
- Hire/fire subcontractors
- Schedule trades as needed
- Ensure supplies are on-site
- Site cleanup
There is so much more but we will get into that more later in the post.
So do you need to hire a GC to build your new home?
It depends.
If you’re financing your new home some banks will require a licensed GC.
If not, or your bank doesn’t require one then no you do not need to hire a GC.
Should you hire a GC?
It depends.
Some people will say that don’t need to spend the money to hire a GC, and that anyone can be a GC.
We disagree.
There are a lot of factors to consider and not everyone is cut out to do the job.
The Pros and Cons of being your own General Contractor
PROS:
You’ll save money-
The average GC can charge 10-25 % of the final cost of your project or a flat hourly rate of $50-$80 an hour. It all depends on the area you live in and the size of your project.
This is probably the MAJOR reason why many people take on this HUGE responsibility. That extra money can help with the unexpected costs that will arise as you build. It can also help pay for things you may have had to cross off your list like landscaping and a new deck.
You get to make the decisions instead of someone else
This is your home and you’ve worked hard and want all the details you’ve planned to come to fruition. With a GC you have to swallow your tongue a few times because they will not always agree with your vision and sometimes they will say no to your dreams. But if you’re the GC you decide. You’re the boss!
Granted, your trades may have something to say about some things on your wish list but if you’ve earned their respect they will listen and do what they can to make it happen.
Ability to get up close and personal with the sub-contractors
This might not seem important but it is. Building a relationship with your contractors makes everyone’s job easier and can improve performance. You might be the boss keeping the contractors on schedule and paying the invoices, but you’re also the homeowner and if they see how important this home is to you, it becomes more than just another job to them.
Learn new skills
Being the GC is a hands-on job. That means some of your trades may need help from time to time and if it will save you money you’ll need to jump in with both feet. The good thing is you’ll learn a ton of new skills. The job also has a lot of different hats, so you’ll gain skills in scheduling, budgeting, ordering inventory, paying invoices, framing, insulating, wiring and so much more!
Cons
Time-consuming
This is the MAJOR reason most people hire someone else to be the GC. It’s a full-time job. So if you already have a job, realize you will now have a second one. And this one doesn’t go by a regular schedule. At any given moment a trade can have an issue. They are there to work, not try to figure out why the power isn’t working so they can’t use their tools, or why there is a river running through the living room where they need to work because it rained the night before. These issues and many more are the GC’s responsibility, which if you’ve chosen to take on the job are now yours! Often a phone call is not enough so you have to drive to the location. That might not be easy if you’re working your main job, or if you live a great distance from the site.
You’re the boss
Yes, I know that was part of being a pro but being the boss has its cons too. Like having to fire someone. Some folks might not have an issue with this but if you’ve never done it before let’s just say it’s not easy. But it is necessary if the sub-contractor is either not doing the job you hired them for or they aren’t doing it in the time frame they agreed to.
MISTAKES COST MONEY(YOUR MONEY)
There are so many facets to the job of being a GC. Many involve quick thinking and knowledge about every trade. And all of them involve the budget! YOUR BUDGET! Something you may think is a simple mistake like a wall outlet being put in the wrong location can end up setting the budget back a lot. If you don’t have the experience and knowledge needed you could end up blowing up your budget.
UNEXPECTED ROADBLOCKS
A professional GC has established contacts and sub-contractors. They are familiar with construction and have built a network with trades and other professionals to make things run smoothly. You’re on your own if you choose to be the GC. You will have to research each trade’s bids, reputation, and work ethic.  You may even need to build a relationship with professionals like your city clerk, HOA management, and county officials so they can assist you with permits, licenses, and possible restrictions without issue.
FINAL word
When Michael and I decided to take on being the GC of our new home build we had no idea what to expect. We had planned for EVERYTHING else, and I mean EVERYTHING, but not that.
Do we have regrets? Yes, most certainly.
Would we do it all over again? Yes.
Would we change anything we did? Absolutely!
And we will share all of that, and so much more in the second half of this post-A Guide to Building a New Construction Home!!
Thank you so much for following us on this journey!
