You’ve decided you want to be your own General Contractor…Congratulations! It was a tough decision to make and the path won’t always be the easiest to take. As the previous blog stated, you don’t have to be construction savvy to feel capable of being a General Contractor (GC) but it is good to have someone you can turn to for advice or tips along the way. If this is your first time being GC, be weary of not exhausting your support person- ideally you’d like to stay friends with them after your home has been built. In the meantime, this blog will attempt to give you a good foundation in beginning your adventure as GC.
First off, if you are building with a partner, make sure you both are 100% on board for building your own home as your own General Contractor; this has been known to put quite a strain on relationships. Set clear expectations and responsibilities of each partner’s involvement.
Be comfortable with and be prepared to assume the risks of being your own General Contractor. For homeowners being their own GC, make sure the contractors are insured and have Workers Compensation insurance. Homeowner’s General Liability insurance will not cover any injuries/accidents to workers on your jobsite- General Liability only protects your physical property. If you have uninsured contractors working for you and they get seriously injured, lawyers will find the homeowner as financially responsible for medical bills, income loss, and whatever else they can think of. If you are being your own GC, it’s safer to eliminate any uninsured contractors from your list- as a bonus; insured contractors usually have a higher quality in their craftsmanship.
Banks are usually more leery of giving construction loans to homeowners building their own home vs homeowners going through established builders or General Contractors. You become a risk to them; banks want to protect their investments. In case something happens and the bank needs to take over their rights on your building project they want to know what’s there is of good quality. The banks know that GC’s will not only allow shoddy work but are also familiar with each stage in the building process; no steps skipped over by being inexperienced. Just be prepared to have loan delays or the loan process in its entirety to not go smoothly or quickly.
