How to Be a General Contractor

Doing your own general contracting on a project should save you between 10% and 20% of the project cost. But, you will earn every cent of the savings in the amount of time, energy and responsibility that you take on. As long as you are aware of that, enjoy the journey.

Instructions

Difficulty: Challenging

Things You’ll Need:

• Time
• Knowledge of Construction
• Organization

1. Define the scope of your project. It is tempting (and often very expensive) to change the scope as you go. So first think out well what you want and what you can afford.
2. Gather the building codes from your city, your county, and your state. Study them.
3. Educate yourself in any areas that you are weak. The more knowledge you have, the less chance that you will be taken advantage of.
   
   Books that should prove helpful (both available at Amazon.com)
   The Complete Guide to Contracting Your Home by Nick Ganaway
   (Constractor Business Management: What Every Construction Contractor, Builder and Subcontractor Needs to Know by Nick Ganaway
4. Discuss your project at length with an architect. He (or she) will be able to help you avoid some pitfalls.
   
   Ask the architect to be sure to comply with the building codes for your city, county and state. If he does not have access to this material, you do and can allow him to use your material temporarily.
5. Apply for your building permit. You will need signed drawings from the architect for this step.
   
   The building permit may take time, which is why you will apply at this step before having any subcontractors lined up.
6. Research subcontractors in your area. Start with referrals. Ask different sources. See how long they have been in business, and ask to see some of their previous work. Check with the Better Business Bureau to see if there have been complaints.
7. Getting Bids:
   
   Obtain copies of the plans for each subcontractor bidding on the job.
   Set up face to face meetings, going over the plans in detail with each subcontractor. Do this before the bid is given. Do this to confirm that everything is included in the bid. Ask that the bid is fully itemized so you can double check that everything that you want done is included.
   
   Ask a lot of questions. What needs to be done before they can start? What is their work backlog? Will they be ready to start when you need them? Have them provide a timeline of the work that they will do.
8. Review your expectations.
   
   Include in your timeline some wiggle room. Almost certainly, everyone will NOT be on schedule. Be sure that you have some extra time built in to your timeline for weather issues, for wrong materials arriving, for errors, and for unforeseen events.
9. Analyze all the quotes. Compare each subcontractor's quotes to others of the same type. If there are large variances, check the line by line items and see where the variances are. Perhaps one vendor is missing something. Don't necessarily take the cheapest. Be sure to analyze quality issues as much as possible.
   
   Choose your subcontractors.
10. Set up a Master Timeline for yourself. Be sure to add that contingency time.
11. Have your attorney write up a contract for your subcontractor's to sign. Be sure that the contract states that no changes that have not been authorized in writing by you are allowed.
    
    
    Be sure to obtain a Certificate of Insurance from each sub-contractor naming you as an additional insured. Do not forget the last part of that statement. It must list you as an additional insured.
12. Obtain your own liability insurance. If you are just an individual, an easy way to do this is to just ask for an umbrella policy that covers anything that your normal insurance does not carry.
13. You've just changed hats. You are no longer the "customer." You are now the boss. The responsibility is yours.
    
    You will need to visit the job site often. You will need to find out from each subcontractor working on the job (daily) what things have happened that will affect the time schedule or the costs of the project.
    
    You also need to check on the subcontractors that will be next in line. Are they still able to come as planned? Have all the necessary materials been ordered, and will they be there on time? And, you need to give them the courtesy of knowing what has changed in your schedule that will impact them.
14. Inspections.
    
    Call the building inspector to inspect work that has been done. The bulding inspector does not always seem to be your friend, and he may insist on changes. But his role is important, and he is there to be sure that you have a quality job and a safe completed project.
    
    But, also, do your own inspections as the work progresses. Look at this in a very detailed manner. Look for all the small features that you have added.
    
    The sooner you find faults, the less it will cost to correct them, and the less impact to your schedule.
15. Payment:
    
    Ask that each bill be fully itemized. You will need to compare against the initial bill to see that there are no variations.
    
    Don't make your full payment until after the building inspector has inspected and passed the work. It is usually a good idea to withhold 10% for a period of time to insure that no problems arise.
    
    
    It is VERY important to get a signed lien waiver from your subcontractor for each and every payment made before or at the time of payment. Not AFTER. The signed waiver is a statement that insures that you won't be sued for payments that should have been made for materials or workers that should have been paid by your subcontractor. Also, if you obtain a bank loan for the project, the lien waivers will be required by the bank.
16. Relax and Enjoy. You've earned it.

Tips & Warnings

• National Roofing Contractor's Association Assoc 800 323 9545
• Portland Cement Association 847 966-6200
• Builders Hardware Manufacturers Association 212 661-4261
• Hardwood Council 412 281-4980
• Air Conditioning and Refrigeration Institute 703 524-8800