If you are a home builder, for sure, you have considered hiring the services of a general contractor or not when it comes to your projects. The most obvious reason to not hiring one is saving more of your money. But to save this amount of money, what does it entail on your part?
Before you go about figuring out if you should be hiring the services of a general contractor or not, you must first know what they do. A general contractor is basically a person who will be overseeing your construction project. They are tasked to also manage your subcontractors and help you finish your project in no time. Usually, they do not have the skills and expertise to carry out particular tasks such as electrical and plumbing. However, they are well aware of the basics of any construction project and are very well organized.
The pros of being your own general contractor
In most places, you can act as your own general contractor if the project is just small or if you are just managing and getting the services of licensed subcontractors. The value of a general contractor to your project must be paid by you. By not hiring one, you are able to save some of your money. Paying less for the remodeling or construction of a house can be more profitable to you.
Aside from saving most of your money, when you act as your own general contractor, you will gain more experience in the field. If you are a real estate investor, you should know that having some basic understanding of how you can remodel a house is a great advantage to you. In the near future, if you will do bigger projects, this experience can help you and also, you can better pinpoint bad contractors and steer clear from them.
And last, if you do not hire a general contractor, you can have more control over your home construction project. Also, this lets you avoid hiring a bad general contractor. Terminating a general contractor, no matter how bad they might be, can be very challenging. They can still have their crews working while still owing their subcontractors some money. When you are the one directly dealing with your subcontractors, the job will be more smooth sailing and less of a hassle.
The pros of hiring a general contractor
There is nothing wrong with being your own general contractor; however, if you are going to become a real estate investor, it would be best if you hire one. It can be difficult juggling investing in real estate and working in it. So, to better concentrate on your real estate investment business, it would be best to hire someone to carry out the responsibilities of being a general contractor instead. Aside from delegating your workload, here are other benefits of hiring a general contractor.
- They have a better understanding of building code and will make sure to do their work according to such code.
- Hiring a good one enables you to save some money on your holding costs because they can get the job done fast and efficiently.
- Liability can be shifted through them. When something is not done right, the responsibility can go to the general contractor or their insurance company. They should also provide you warranty.
- They can save you a whole lot of your money in the sense that they can get a better pricing from subcontractors if they have built good relationships with them. Most general contractors have also established positive relationships with material suppliers.