The Ultimate Pro and Con List for Hiring General Contractors

Pros and Cons of Being Your Own Contractor

Part of being a budget-conscious homeowner is questioning which projects really require a professional and which ones are better suited to a DIY approach. If you find yourself running through the responsibilities of a GC and thinking, “I could do that,” then it may be worth taking a deeper dive into the benefits and drawbacks of acting as your own general contractor.

The Best Parts of DIY

• Boosts your budget. Instead of spending money on contractor overhead and profit margins, you can invest that cost savings back into your kitchen renovation budget.
• No need to compromise. As the sole decision-maker , you’re calling the shots and have a better chance of getting exactly what you want.
• Pride of craftsmanship. You can enjoy the immense satisfaction that comes with building your own home.
• More flexible timeline. You can expedite the timeline or extend it to accommodate priorities as you see fit.
• Quality control. Even if you don’t have first-hand construction experience, you can hire skilled subcontractors to ensure a high standard of quality. And if a subcontractor isn’t meeting your expectations, you can work it out quickly and directly, instead of leaving it to someone else.
• Less red tape. State and municipality licenses that are mandatory for general contractors may not be required for homeowners who act as their own GCs. But these requirements vary by location, so be sure to confirm which legal requirements apply to you.

DIY Challenges

• You’re on your own. If something goes wrong, it’s up to you to fix it, pay for it, manage it or reschedule it. That degree of responsibility and stress (especially on a larger project) can be overwhelming.
• Overcommitting or underestimating. If you’re new to projects of this scope, it’s very easy to bite off more than you can chew. You may soon find that the job requires much more than you expected...more time, more energy, more budget, more materials.
• Quality and cost concerns. Because you lack experience, the overall quality of the project could suffer. You might even need to hire a professional to fix expensive mistakes or redo the work to bring it up to code.
• Unexpected surprises. Every GC will tell you to expect the unexpected. If you don’t even know what to watch out for, unanticipated expenses or delays could sink your entire project.
• It’s a 24/7 commitment. Managing subcontractors, ordering materials, scheduling deliveries, obtaining permits and arranging inspections can feel like a full-time job. That can be hard if you’re also trying to hold down your “normal” job at the same time.
• Insurance liability. If you are hiring subcontractors, make sure they have the appropriate general liability and worker’s compensation insurance policies. Otherwise, you could be liable for any accidents that happen during the renovation process. Ask the insurance agent who manages your homeowner’s policy for more information and research any local requirements to ensure you are protected.

DIY Contractor Checklist

• Start by talking with the insurance agent who handles your homeowner’s policy. Ask what additional insurance you would need to protect yourself, your home, and anyone working on the job site.
• You’ll likely need a builder’s risk or fire policy, but be sure to confirm whether your state has any additional requirements.
• Make sure the insurance policy goes into effect the moment the building materials arrive or the first worker sets foot on the site (whichever one happens first).
• Keep in mind, if you take out a construction loan, the bank will likely need to see proof of insurance.
• You have to hire your own subcontractors, which requires knowing all the steps required for your kitchen renovation and the order in which they should occur. Ask friends, family and neighbors to recommend reputable subcontractors or search online for candidates with positive reviews.

Pros and Cons of Hiring A Contractor

If you’re still on the fence, here are some compelling arguments for and against outsourcing general contractor responsibilities to a trained professional. As a bonus, you can also refer to these checklists when you’re interviewing potential GC candidates to make sure you choose a good one!

Why Should I Hire A General Contractor?

• Reduced risk, liability and hassle. Any issues that threaten the success of your renovation are your general contractor’s problems to solve, not yours. That includes everything from subcontractor disputes, missed deliveries and damaged goods to more serious issues, like accidental injuries. GCs are required to carry worker’s compensation insurance, so if someone gets hurt on the job the liability is transferred to them, not you.
• Access to reputable resources, quality materials and lower prices. Your GC can help you choose the right materials for your job, often at lower costs, due to volume discounts. They also invest time vetting quality subcontractors and building strong relationships with them, so you’ll get better prices on materials and labour. Plus, in-demand subcontractors often prefer working with GCs they know and trust over inexperienced homeowners.
• Friends in high places. Not only do GCs manage tedious administrative duties like filing for permits, they know local building regulations inside and out, so they can help you avoid code violations. They often develop a close working relationship with the building inspection office, which may grant them advantages that aren’t extended to regular homeowners.
• Motivated to work quickly and efficiently. Obviously, you want your dream kitchen to be completed ASAP. Your GC is just as motivated (if not more) to complete your renovation quickly so they can pay their subcontractors and move on to their next money-making opportunity.
• Finally, they have a reputation to maintain. Repeat clients and referrals are a GC’s bread and butter, so they’re incredibly motivated to do great work and go above and beyond to keep you happy.

Drawbacks of Hiring a Contractor

• Be prepared to pay a markup. Con­tractors need to earn a living, just like any other service provider. So in addition to the cost of materials and labour, they will add a percentage of markup to the fees they charge to make a profit -- generally around 20-30%. That’s money that stays in your pocket if you choose to take on the role of general contractor yourself.
• You may need to make some compromises. If you hire a GC for their expertise, that means you should probably listen to them when they advise against a particular idea or request. Working with a general contractor means forfeiting some of the control you would have if you were doing things on your own.

Tips & Recommendations

If, after reading through these pros and cons, you’re still not completely sold on hiring a general contractor or going it completely alone, you may want to consider an option that combines the best of both worlds. For example, if you are 90% sure that you could handle the role of general contractor yourself, but suspect your administrative skills aren’t up to snuff, consider hiring a construction manager who could support you with permit applications, invoices and anywhere else you need help -- such as managing subcontractors, scheduling, inspections or purchase orders.

If you’re interested in taking a more active role in your kitchen renovation, but you don’t want your inexperience to jeopardize the whole project, then search for a general contractor who’s willing to let you get some first-hand experience on the job site. Or start with a very small project on your own, and work your way up to a larger renovation, learning as you go.