Hire a Contractor or Do It Yourself?

Some owners decide to act as their own general contractor for a remodel or addition to their house. This approach is not for everybody, and you should research it thoroughly before undertaking a project as your own general contractor. Most people who have full-time jobs do not have time to also do the job of a general contractor.


Responsibilities of the Owner-Builder
As the general contractor, you pull all the building permits, order materials and make sure all supplier are paid. An owner/Builder is also responsible for supervising, scheduling and paying subcontractors. If you use anyone other than your immediate family or a licensed subcontrctor for work, you may be considered an "employer". Employers must register with the state and federal governments and are obligated to participate in state and federal income tax withholding, federal social security taxes, workers' compensation insurance, disability insurance costs, and unemployment compensation contributions.

Hiring only licensed subcontractors prevents you from being an "employer", but you will still spend time supervising, scheduling and paying subcontractors. Often the owner will purchase plumbing fixtures, light fixtures, cabinets, ceramic tile and stone. For most owners (especially those who have full-time jobs) this part of the job is as much as they have time for.

The Downside of Being an Owner-Builder
Unless you are knowledgeable about construction, mistakes can be costly and take additional time to repair. Good general contractors use their building experience to trouble-shoot the subcontractors' work and to keep the project running smoothly. Many homeowners underestimate just how costly inexperience can be. If in doubt, ask a contractor to tell stories about lessons he learned as he was starting out.

Subcontractors and suppliers who are not paid on schedule may file mechanic's liens against your property. Educate yourself about mechanic's liens and how to prevent them.

If your workers are injured, or your subcontractors are not licensed or do not carry liability insurance or worker's compensation and they are injured, you could be asked to pay for injuries and rehabilitation through your homeowner's insurance policy or face lawsuits.

Successful Owner-Builder Experiences
After 25 years in the architectural profession, I have seen only a few people who successfully managed owner-builder experiences. Most of these were people in the design or construction professions, or who had close friends in the building trades. The one exception was a housewife who spoke in glowing terms of having acted as general contractor for her kitchen remodel. She did not have a full-time job, she enjoyed managing people, and her husband (trained as an architect) was available for consultation.

Resources
The California Contractors State License Board www.cslb.ca - has excellent project planning tips and resources
The Building Education Center in Berkeley, CA www.bldgeductr.org provides a variety of seminars, short classes, and hands-on workshops aimed at educating the Owner-Contractor.