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#1
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Building a new Home Acting as my own GC
So I am getting ready to kick off a new house build, and this time I am going to act as my own GC. Does anyone have any gotchas from when they did it? I have all my bids in, I have my budget in place, and I am getting ready to go actualy lock in the construction loan (I already got preapproval) Right now the only thing I am unsure of is which company should I contact to get insurance during the build? Is it actual home owners insurance or is it a special type of construction insurance.
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2004 G35 Coupe [Desert Platinum] Vortech 3.33 | HKS HI Power TD Exhaust | IONIC Grill | Skyline Badging |18's Black/Chrome Stern Wheels |Carbon Limited JS Hood | DEFI-Water Temp, Boost, Fuel Pressure | Innovate Wideband | Kenstyle Rear |Greddy Front/Sides |
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#2
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^^ You need Builder's Risk Insurance as well as Liability insurance. Also, a few words of advice that will DEFINITELY help are, get EVERYTHING in writing from your subs. I mean EVERY DETAIL of what they are supplying / doing. Do not let them do any "extra" work without a written / signed change order beforehand. Subs LOVE to rape you on "extras", especially when you tell them "go for it" and don't put anything in writing.
Other then that, I guarantee you this is going to suck up ALL of your time, especially if you are not going to be there every day during the day to make sure everything is going smoothly. Most people I ask that built their own home and are not in the construction industry tell me they wish they hired a GC. Good luck & keep us updated with pics & info! Also, you will most likely go over budget, so make sure you have a "contingency reserve" in your construction loan of at least 5-10% Also, you'll probably end up paying $2-3 per $1k of the construction cost for Builder's Risk
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08 G37S 07 G35S Last edited by CrazyRuskie : 06-04-2008 at 04:24 PM. |
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#3
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^+1
When I built 18 years ago now I was on site 3x per day every day for nearly 4 months. Fortunately I wasn't living and working far away- 10 minutes for both. Always get everything in writing - original quotes/changes. I went over budget approx 15% and I thought I was generous in the beginning. Be ready to get tough with some of the trades and/or switch to another competitive sub if they are holding you up. |
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#4
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Yea, my foundation guys are probably the only ones that might hold me up. Otherwise my framing, roofing and siding, is actually being done as a package deal from the lumber yard. So the walls will be built offsite, and they will ahve it framed and dried in two weeks after foundation is completed. I have a friend doing my HVAC and I am doing electrical. The drywaller I have used before, and I am doing all the painting. I will also be laying all the tile work as well as all the electrical. and the Cab's are being done by a guy I work with who has a business on the side. Since I work 45mins from where I live, I will at best be able to get there in the evenings, so I am hoping things run smoothly.
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2004 G35 Coupe [Desert Platinum] Vortech 3.33 | HKS HI Power TD Exhaust | IONIC Grill | Skyline Badging |18's Black/Chrome Stern Wheels |Carbon Limited JS Hood | DEFI-Water Temp, Boost, Fuel Pressure | Innovate Wideband | Kenstyle Rear |Greddy Front/Sides |
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#7
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pre-negotiate / lock-in labor & equipment rates from ALL of your subs before you start. get them to put in writing the rates for common tasks - overtime hours, equipment rentals, moving X from here to there, patching Y linear feet of drywall, doing touch up paint for Z hours, etc.
there are bound to be change orders and you'll probably need to have them do some time & material work if the schedule gets tight. you don't want to have to argue with a contractor over costs after they've sent you the bill for doing the work.
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'05 IP 5AT Coupe | 20s | Covenant Energy Blade | zH-Techs | Ings +1 | BBK | Chargespeed | NRG | Injen | Nismo | CarDomain | Props is a true thug's wife... |
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#8
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depends on the project size you might want to ask for bond, schedule of value, and excactly what kind of work sub-contractors are going to be doing..
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2006 6MT COUPE (GONE) 2006 FX35
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#9
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I suggest you lay out a very detailed schedule with start and complete days for the entire build and stick to it. Otherwise construction delays and scheduling will cause you to pay thousands extra in loan interest and penalties.
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#12
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Thanks for the info guys, I hadn't thought about including a pentality for not completing on time. My guess the folks around my area are still so busey, if I try to add something like that, they just won't take the job. I have had a hell of a time even getting plumbers to call me back because they are so busy.
d4vid-Dropped you a PM
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2004 G35 Coupe [Desert Platinum] Vortech 3.33 | HKS HI Power TD Exhaust | IONIC Grill | Skyline Badging |18's Black/Chrome Stern Wheels |Carbon Limited JS Hood | DEFI-Water Temp, Boost, Fuel Pressure | Innovate Wideband | Kenstyle Rear |Greddy Front/Sides |
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#13
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Four or five years ago, I helped my parents build a higher end custom house. We had started out with a GC but as problems were discovered, they decided to walk off the job and we were left to finish the house ourselves. I ended up spending 4-8 hours EACH day on the job site making sure things were done properly, approving work, submitting final choices to the subs, etc. While subs did not like having to redo substandard work, they were impressed with my attention to detail and expectations. You must stay on top of subs if you want decent work, few will go back and correct things on their own.
The house was originally supposed to take six months start to finish, it ended up taking 14 months and an extra $200,000 (nearly 50% over budget) to complete. Before all was said and done, we had to tear off the roof and replace it, repaint the interior, and bring in a second pool company to finish what the original company was unable to, equating to an additional $61,000 for just those redos. On top of that was the discovery of the GC having taken loan draws without paying the subs and they floated my parents money on other jobs. About $60,000 disappeared due to this. Shop your subcontractors, ask to see examples of their completed work and for references. Ask the references how the subs were in completing the job. Did they show up? Did they honor their bid or did they exceed it? It is unreal the difference you will find in pricing and quality. Avoid the lowest bids but do not think for one second that the higher bids will automatically bring higher quality. Make sure you obtain lien releases from every last sub that walks on the site as they finish their jobs and are paid in full. Withhold a fairly significant portion of the total bid if the work is unacceptable, once a sub is paid in full or nearly in full, you will have a hell of a time ever getting them to come back to redo work or complete a punch list. Whenever I build a house, I will not use a general contractor. In the unlikely circumstance that I would need to hire one, I certainly would not allow them free reign over loan draws.
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Greg THEN: '05 Infiniti FX35 w/ Touring, Sport, Tech. NOW: '06 FX45 - Sheer Platinum/Espresso
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#14
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Quote:
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'05 IP 5AT Coupe | 20s | Covenant Energy Blade | zH-Techs | Ings +1 | BBK | Chargespeed | NRG | Injen | Nismo | CarDomain | Props is a true thug's wife... |
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