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
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
Why not? If you have someone with the time and experience to organize everything, and you don’t mind if the work is significantly delayed, then go ahead. What I mean is this: don’t underestimate the guaranteed construction period with a general contractor or developer. Many materials can have long delivery times. These materials would need to be ordered while the shell construction is still in progress. Personally, I wouldn’t trust myself to remember this on time with so many other things to manage.
So, if you can handle the double financial burden of rent and loan payments for several months, or if you consider the risk manageable, you can give it a try.
My parents did it this way 10 years ago. The construction period was extremely stressful and nearly broke their relationship. On top of that, the project took 3 months longer than planned, and many rooms were still without flooring, ceilings, etc. Based on my own painful experience, I would rather advise against it.
So, if you can handle the double financial burden of rent and loan payments for several months, or if you consider the risk manageable, you can give it a try.
My parents did it this way 10 years ago. The construction period was extremely stressful and nearly broke their relationship. On top of that, the project took 3 months longer than planned, and many rooms were still without flooring, ceilings, etc. Based on my own painful experience, I would rather advise against it.
P
perlenmann4 Oct 2011 11:39A construction company charges very different prices for trades compared to if you hire them yourself. Plus, you are responsible for the schedule and timeline. And on top of that, you have the added stress.
Hello,
It is generally more advantageous to have the main structure built by the general contractor (GC) and subcontract only the “sensitive” areas (building services such as heating, ventilation, and domestic hot water) to external specialists. This way, you can benefit from the price guarantee usually offered by a GC for most of the project, while avoiding the risk of being overcharged in the critical areas.
Local or regional general contractors tend to be well suited for this approach, whereas large, nationwide companies often focus more on selling their standard package deals.
Best regards
Kati27 schrieb:The idea makes sense, but this approach often leads to a more open-ended planning process. In reality, the best solution is usually a “middle ground.”
...Yesterday a friend of ours came up with the idea of only having the house designed and then contracting all trades ourselves.
It is generally more advantageous to have the main structure built by the general contractor (GC) and subcontract only the “sensitive” areas (building services such as heating, ventilation, and domestic hot water) to external specialists. This way, you can benefit from the price guarantee usually offered by a GC for most of the project, while avoiding the risk of being overcharged in the critical areas.
Local or regional general contractors tend to be well suited for this approach, whereas large, nationwide companies often focus more on selling their standard package deals.
Best regards
Hello!
Thanks for the tips. Yes, maybe a "middle ground" is the best option. But what would that look like? Do you get a complete quote first and then remove certain trades afterward, or do you agree in advance which trades you want to subcontract yourself and have them excluded from the initial quote?
Regards
Kati
Thanks for the tips. Yes, maybe a "middle ground" is the best option. But what would that look like? Do you get a complete quote first and then remove certain trades afterward, or do you agree in advance which trades you want to subcontract yourself and have them excluded from the initial quote?
Regards
Kati
B
Bauexperte8 Oct 2011 10:57Hello Kati,
It sounds very simple here ... but it is not. You should only consider buying a closed shell from the (still to be found) general contractor and handle the rest by subcontracting yourself if you know what you are doing, have people you can rely on 100%, who understand their responsibilities and act accordingly. By the way: not every builder/general contractor fits the description given here; there are definitely reputable companies!
Hardly any general contractor/builder will provide a full breakdown of all trades, as that is not their business. Furthermore, you should not randomly pick trades to handle or subcontract yourself; in the worst-case scenario, this often leads to lengthy disputes about who must cover warranties and who does not.
Most reputable providers offer different stages of completion, starting with the closed shell and ending with a turnkey house. The approach that suits your budget – and in my opinion is also the right approach if you decide on the closed shell – means you should involve a building services planner (mechanical, electrical, plumbing). I also strongly recommend, as absolutely necessary with this approach, hiring an external construction manager. You need someone who stays up to date, constantly educates themselves, and can coordinate the individual trades based on that – someone you can hold liable if necessary. A retiree, as mentioned, will hardly be able to manage this, even if they once learned a trade.
"C&C" is right when mentioning the required timeframe, and "Perlenmann" when it comes to pricing. I recently spoke with one of my clients who, much like you seem to be considering, only excluded the classic finishing trades from the contract – such as tiling, sanitary fixtures, or interior doors – because he was confident he could subcontract these cheaper on his own. According to him, the interior finish turned out beautifully, but he admitted unsolicited that it was not as cost-effective as he had expected. Only the higher-quality tiles were more expensive, everything else cost about the same as in our offer, and ... it took him much longer. He said he would not do it again because even selecting the craftsmen and reviewing the offers took him a lot of time.
Kind regards
Kati27 schrieb:
Thanks for the tips. Yes, maybe a "middle ground" is the best option. But what would that look like?
It sounds very simple here ... but it is not. You should only consider buying a closed shell from the (still to be found) general contractor and handle the rest by subcontracting yourself if you know what you are doing, have people you can rely on 100%, who understand their responsibilities and act accordingly. By the way: not every builder/general contractor fits the description given here; there are definitely reputable companies!
Kati27 schrieb:
Do you get a full offer and then remove trades afterwards, or agree in advance which trades you want to handle yourself and exclude them from the quote right away?
Hardly any general contractor/builder will provide a full breakdown of all trades, as that is not their business. Furthermore, you should not randomly pick trades to handle or subcontract yourself; in the worst-case scenario, this often leads to lengthy disputes about who must cover warranties and who does not.
Most reputable providers offer different stages of completion, starting with the closed shell and ending with a turnkey house. The approach that suits your budget – and in my opinion is also the right approach if you decide on the closed shell – means you should involve a building services planner (mechanical, electrical, plumbing). I also strongly recommend, as absolutely necessary with this approach, hiring an external construction manager. You need someone who stays up to date, constantly educates themselves, and can coordinate the individual trades based on that – someone you can hold liable if necessary. A retiree, as mentioned, will hardly be able to manage this, even if they once learned a trade.
"C&C" is right when mentioning the required timeframe, and "Perlenmann" when it comes to pricing. I recently spoke with one of my clients who, much like you seem to be considering, only excluded the classic finishing trades from the contract – such as tiling, sanitary fixtures, or interior doors – because he was confident he could subcontract these cheaper on his own. According to him, the interior finish turned out beautifully, but he admitted unsolicited that it was not as cost-effective as he had expected. Only the higher-quality tiles were more expensive, everything else cost about the same as in our offer, and ... it took him much longer. He said he would not do it again because even selecting the craftsmen and reviewing the offers took him a lot of time.
Kind regards
Similar topics