Everyone wants to save as much money as possible when doing renovations. You want the job done well, but you don't want to spend more than necessary. When it's a big project you're doing, hiring a General Contractor to head up the project can add 10-20% to the overall cost. So, should you consider being your own general contractor? We explore this idea and talk about a couple of cases that we've experienced firsthand.

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What About Small Projects?

For small renovation projects, it's pretty simple to run the project yourself. For example, you might want to renovate your master bedroom. A fresh coat of paint, some crown molding, installing some pot lights, and some new flooring could really spruce up the bedroom. If you’ve got a little bit of renovation knowledge and some interior design savvy, this would be a pretty simple project for you to tackle on your own.

Start by selecting your favourite paint colour and finding a good local painter. If you don't already know one, your local paint store should be able to refer you to one. Check out your local lumber store to pick out a crown molding you like. Hire a carpenter to install it. You can easily find a Licensed Electrical Contractor to install your pot lights by checking out the Electrical Safety Authority website. To replace the flooring, just go to your local flooring store. They have their own experts on-site who can help guide you to just the right products. They usually have their own installers as well.

This whole process could prove to be quite simple and enjoyable. However, even a simple project like the one I've just described can turn into a nightmare if you don't have the time, dedication, or experience to know what to do.

What Could Possibly Go Wrong?

For example, if you buy the wrong type of paint, it could make a mess of your walls. If you don't have a good sense of style or any interior design knowledge, you could pick a colour that completely clashes with everything else in the room. Crown molding can look beautiful, but if the 'carpenter' you hired is a handyman and has only ever installed crown molding once, then you could end up with poor joints or a crooked installation.

And what about the time it takes to source all of this? I've been a Project Manager for over 15 years now, and it still takes me a considerable amount of time to find just the right products for my customers. Especially if you're not experienced at this, you don't want to rush the decisions. If you have a full-time job, kids at home, soccer practice to take them to, etc., trying to be your own general contractor on a project can be a drain on what little time you have left and, more importantly, your energy.

Will You Really Save That Much?

You might also find that you don't save as much money as you initially thought you could. Remember that General Contractors deal with these suppliers all the time and, therefore, typically get contractor discounts. What that usually means is that you will be paying the same retail price to them as you would if you went into the store yourself. They will just be making 10–15% because of the contractor discount they get.

I'm not trying to suggest that you shouldn't manage your own projects. However, you need to know what you're up against and what types of problems you could encounter. A seasoned contractor will be aware of all the pitfalls and problems that can be encountered on a project, be prepared for them, and know how to handle them. They know how much time to allow for the different aspects of the project, and they also know in what order tasks should be done.

Should the White Carpet Really Go In Before the Project Starts?

We did some work for a client in Ajax who wanted to be her own general contractor when finishing her basement. We were the primary company that was hired to do the majority of the work. However, she decided to do the flooring and the painting herself.

We were gobsmacked when we showed up on the first day to start work and found brand new off-white carpet on the stairs to the basement. This was the only access to the basement, which meant carrying lumber, drywall, garbage, and so on up and down those stairs numerous times until the project was done. Because we always cover all surfaces completely, the stairs remained relatively clean, but they looked about 10 years old by the time the project was done, just from wear and tear alone. A good contractor knows the proper order to do each task to ensure the best results for a project.

What About the Large Projects?

When it comes to big projects, you can also be your own general contractor and run the show yourself, but to be perfectly honest and transparent, I strongly recommend against it. Unless you have a lot of experience and know a tremendous amount about renovations, this could and likely will be a nightmare.

First of all, I should define what I'm classifying as a large project. A large project doesn't necessarily mean building an addition or renovating an entire house. A large project can be something as simple as a bathroom renovation. Bathroom renovations can take anywhere from two weeks up to six or even eight weeks to complete, depending on how extensive they are. There are also lots of different trades involved in a bathroom renovation, such as a carpenter, taper, painter, tiler, plumber, and electrician. Just the task of finding the right people to do each of those tasks makes this a large project.

There are several reasons why homeowners might choose to be their own general contractors on a large project. The most common reason is that homeowners think they will save a lot of money. They also believe they will be able to maintain control over the project and ensure everything gets done exactly the way they want it done. Another reason some people want to be their own general contractors is simply the pride and satisfaction of doing the job themselves.

Some of the Problems You Might Encounter

Let’s address some of the problems you might encounter when being your own general contractor. While it is true that General Contractors (GC) will add anywhere from 10% to 20% to the cost of a project, that percentage pays for their knowledge, experience, stress levels, and the time and energy they will take to organize and manage your project. You are ultimately paying for their years of experience.

In most cases, you won’t end up saving anywhere near as much as you think. Yes, a GC will make some profit, but the margins on large jobs are quite small, and if things don’t go according to plan (and they never do), those margins get even smaller.

Also, if you’re not too experienced with renovations, you will likely have unanticipated expenses and cost overruns. This is very common, even with contractors, but if you hire a General Contractor, they are responsible for those overages.

You’ll Need to Make a Time Commitment

You will likely be quite surprised at how much time and energy are required to run a project. You will need to commit to at least two hours a day during the actual construction part of the project. If you are going to work off-site the rest of the time, you must be on call for surprises and emergencies. Is your workplace close enough to allow you to return home during working hours if the need arises? Are you accessible by phone at all times? Remember, you are the one managing the project, and therefore you will need to be reachable at all times to make the important decisions.

A Real Life Example

We worked with another client in Pickering who was the general contractor on his whole house project. He was building an addition and completely renovating the inside of his home. The bathroom was doubling in size, and the kitchen was moving to a completely new location. Walls were coming down, and others were going up.

We were hired to do the electrical and plumbing on the project. Our client was hiring all of the rest of the trades himself and managing or overseeing the project. It was a nightmare!

One of the advantages of working with a general contractor on a project is that the GC has an established relationship with the tradespeople. They have already spent years finding the best people to do the job. And because they consistently offer work to these subcontractors, there is dedication and commitment from them.

Our client had a lot of trouble finding quality people to work with. Trades consistently didn’t show up when they were supposed to, came for one or two days and then disappeared for a week, walked off the job when it was only half done, and the list goes on. If a subcontractor did that to a GC, they would never be offered work with them again. Because the people our Pickering client hired knew this project was a 'one-off', they didn’t have the same dedication to the homeowner as they would to a general contractor they consistently work with.

Our Pickering client even went so far as to order the custom interior doors himself instead of buying them from the carpenter he hired to install them. He told us he felt like he was being gouged by the carpenter. We told him it was a fair price and he’d be better off getting them through the carpenter since they were custom doors. In an effort to save money, he ordered them himself.

However, when the doors (all six of them) showed up, they were all the wrong size! Because this was a custom order, he was stuck with them. He had to re-order the doors three times before he finally got it right. Not only did he not save any money, but it cost him a lot more in the end!

Being a GC Involves a Lot More Than You Think

There is so much more to being a GC than just picking out fixtures and hiring subtrades. You are running the show and are essentially a manager responsible for 3–10 employees or more. You are the one who has to make ALL decisions, large and small. You shoulder the stress, the problems, the headaches, the backorders, the material shortages, etc. Everything falls on you!

If you work full time, have children or other dependents you care for, or, for that matter, have a life, being your own general contractor might not be worth the small amount of money you will save.

General Contractors are paid to solve problems and get the job done! When you entrust your project to a GC, you are paying for his experience, competence, ability to anticipate problems, and perhaps most importantly, for his assuming full responsibility for the job. That alone is worth its weight in gold!

If you’re seriously considering being your own general contractor on a small or large project, make sure you do your research first to decide if you really have the time, energy, knowledge, and experience to do it well. Make sure you have excellent interpersonal skills, outstanding organizational skills, and are tough as nails to stay the course even when things go badly. And I guarantee it will get rough—all renovation projects have their ups and downs, setbacks, and frustrations.