ᐅ Hire a General Contractor or Manage Trades Yourself?

Created on: 3 Oct 2011 13:37
K
Kati27
Hello everyone,

We originally planned to build with a construction company that would handle everything and also manage subcontractors (a full-service package—almost turnkey). We have been searching for some time but haven’t found a company we trust yet. Yesterday, a friend suggested that we could just have the house designed and then hire all the subcontractors ourselves. This has the advantage of not being tied to one company in case it goes bankrupt, but of course it also involves a huge additional effort.

We have NO experience with this. However, my father (retired) has plenty of time and is willing to take care of it. But as I said, we are amateurs. We do have a friend (a tile setter) who knows all the companies in the area and their quality.

Would this possibly make sense, or is it too risky? How would such a process work?

I would be grateful if someone could help or has had their own experience with this.

Best regards,
Kati
€uro
8 Oct 2011 20:12
Hello,
Kati27 schrieb:
..Yes, maybe a "middle ground" is the best alternative. But what would that look like? Do you get a complete quote and then remove trades afterward, or do you agree in advance which trades you want to contract yourself and have them excluded from the quote right away?
“Scaling back” is usually the less favorable option, since the credits for removing trades generally fall below market rates. There is a reason for this. The contractor has priced the job as a complete package, and by removing parts of the scope, necessary profit margins are lost. It is much better to “scale up,” for example, by having a fully enclosed shell construction that is then supplemented with the missing construction tasks. Even with these additions, the general contractor can still be involved, while only the sensitive tasks are subcontracted. Overall, this is an option that is gaining attention for various reasons.

Best regards.
B
Bauexperte
8 Oct 2011 23:13
Hello €uro,
€uro schrieb:
... Even with these additions, you can still involve the general contractor and subcontract only the sensitive tasks.

There he is again, the "€uro"

Kind regards
B
Brombadegs
9 Oct 2011 12:53
Hi,

I have now decided that for my house construction, I will definitely hire a building surveyor (independent from the construction company, general contractor, or anyone else). This person will supervise the construction and the trades. It does cost a bit more, but they can also prepare the lists for the individual trades and obtain quotes (handle the tendering process). I would also feel more comfortable if everything didn’t come from a single source.

Consider this option. As a benefit, you have someone who closely monitors the craftsmen, identifies poor workmanship, and takes action against it. I expect additional costs of around 4000–5000 € (approximately 4,200–5,300 USD). By the way, mine also advises in advance and reviews offers before signing.

Best regards,
Brombadegs
B
Bauexperte
9 Oct 2011 13:09
Hello,
Brombadegs schrieb:
I have now decided to definitely hire a building inspector (independent of the construction company, general contractor, or anyone else) for my house construction.

Good decision; I would feel much more comfortable if more homeowners handled it this way.
Brombadegs schrieb:
By the way, mine already provides advice in advance and also reviews offers beforehand—so before signing any contract.

That is an important point of protection for homeowners already before signing a contract, which I—although I don’t remember how many times—have recommended here. There are plenty of contacts nationwide for evaluating construction documents, ranging from lawyers to professional building consultants; perhaps your contribution here will help raise awareness among potential homeowners about this approach. Thank you.

Best regards
E
Edding
10 Dec 2011 12:19
We are building with the developer company Drewes, Tülau. The completion date has been significantly delayed. Therefore, my recommendation is: Basically, you should protect yourself against time delays through contractual penalties. The belief that choosing a developer who can coordinate everything in one place would result in better cooperation during the construction process is, as we have found, purely theoretical. And having the developer as an additional intermediary between the client and subcontractors adds an unnecessary layer. The assumption that the developer could offer better prices due to multiple contracts (effectively a "volume discount") is also, based on our experience, a nice theory; in reality, this benefit is completely absorbed by the developer acting as a middleman, and the client sees none of it. Quality work has its price and cannot be reduced indefinitely through purely quantitative measures. I would advise caution if a developer’s cost estimate for a trade differs significantly downward from others…it usually means the same quality cannot be expected. For example, in our case, a non-standard-compliant screed membrane was installed, and the people responsible for attaching the battens to the vapor barrier had never heard of the different types of sealing tapes, such as those from Siga. The time and stress involved when you, as the client, try to enforce your demands is, in our experience, more difficult when working with a developer, as they tend to rely on false documentation or false statements from subcontractors claiming the complaints are unjustified. Some subcontractors of our developer refused to provide any information about the amount of additional costs for alternatives during the specification meetings, as they said they were verbally forbidden by the developer and feared losing future contracts if they did so.