Hiring a General Contractor vs. Acting as a General Contractor – Know The Difference
Once you’ve decided to build your own home, or a commercial building for business purposes, the very next thing that comes you mind is execution of your idea. It is then that you begin to think of all the professional support that you may need to practically implement you plan. General contractors play a major role in construction projects and therefore their role cannot in any way be skipped.
When it comes to hiring workers, people often get confused whether to hire a general contractor or act as one. It is because hiring a general contractor will obviously cost you more and the budget of the overall project will increase. Some people are willing to bear these additional costs while some are not.
So in case you are facing any such confusion, we have explained below how acting as a general contractor differs from hiring one.
Acting as a General Contractor
Being a property owner, you will be allowed by most of the jurisdictions to act as a general contractor for your own construction project. Therefore, you can supervise all the activities taking place on the project site and ensure that everything is being completed by the given deadlines and within budget. You can also hire and manage sub-contractors and assign tasks to workers.
But why would you want to do all this?
- The first reason is that you can save a lot of money that you would have to pay a hired general contractor.
- Secondly, acting as your own general contractor will help you learn the whole process; you’ll have a better understanding of your business. Being a general contractor along with being an investor, you will have a better know-how of all the phases of construction process including HVAC systems, electrical work, and plumbing etc. You will get to know more about labour prices and material costs, and how much time it takes to install these materials.
- The third benefit of doing so is getting more experience in this field. You will gain experience of being a real estate investor and along with that of being a general contractor. The experience you gain as a general contractor will be invaluable for your career as real estate investor.
- Finally, you get the chance to deal with your subcontractors directly and monitor their work more closely. Whereas, if you hire a general contractor, you have contact the subcontractors through him or her.
Hiring a General Contractor
You’d know by now that a general contractor plays a central role in any construction project. Here’s why hiring one may be a good idea:
- As they’re experienced professionals, they have a better understanding of the whole process. They know what permits are needed and how to get the project approved. They have dealt with inspectors and building codes before, so they make this process much easier.
- Secondly, they know how to maximize efficiency of any job. They get the work done in the most efficient way possible. They schedule the subcontractors and workers and set deadlines to ensure everything goes smoothly.
- Another major benefit of hiring a general contractor is that they can get labour and material at better prices due to their links in the industry. These better prices may help you reduce the overall budget of your project.
- One of the greatest benefits of hiring general contractors is that they take warranty of the work they do. They will ensure that everything is going right and there are no delays. Even if there are any unforeseen complications in the project, they will come out and solve them as soon as possible. It’s because they want to work in long-term with their clients and keep them happy.