Why Use a Contractor
Project owners usually cannot review the subcontractor`s work and immediately know if the work will pass inspection. An experienced general contractor can do this; You don`t have to pay a fee for a new inspection or even bear the pressure of result delays. A general contractor always knows the exact local variations and specifics of local building requirements and codes. A lien is a receivable due associated with your title and prevents you from selling your home until the claim is settled. If you withhold your contractor`s payment due to a dispute over your project, he or she may place a lien on your home. If your contractor does not pay the supplier from whom they ordered materials for the renovation of your home or a subcontractor for the work done on your home, the supplier and subcontractor may impose a lien on your home and demand payment from you even if you paid the contractor. You may not even know that a lien has been deposited against your property until you try to sell it. To avoid this situation, check your contractor`s loan and look for claims that will be filed against him before signing the contract. Also include a provision for pledge waivers in your contract. This is a legal document that the general contractor – and possibly suppliers and subcontractors – signs every time you make a payment. It states that the payment you just made met their requirements and each party waives the right to deposit a lien on your home. „Owner-Builder” is in many areas a term in which the owner becomes the general contractor on his own property. This owner-builder must take care of all the matters that a general contractor would normally do: state and federal taxes, workers` compensation, and other legal obligations.
But the amount of money you can save by acting as your own general contractor can be simply staggering. If you charge a typical 20% commission from the contractor for a large space addition that costs $200,000, you can save $40,000 by acting as your own contractor. After reading this far, you may already have an idea of why you want to hire a general contractor. A general contractor can be a great advantage. Here`s why. Some contractors are essential because of their knowledge of potentially dangerous systems such as natural gas or electricity. But do you need a general contractor to oversee and coordinate all this work? Or should you act as your own general contractor? There are pros and cons on either side of this story, and we`ll go over some of them shortly. First, let`s make sure we all understand what a general contractor is and what they do. While you don`t need a permit for every home repair, a contractor knows when you need it. A contractor must be approved by a state agency before legally starting the work. The Council of State ensures that the entrepreneur complies with all the rules and regulations applicable to your region.
Your contractor has liability insurance and compensation for employees in the event that an accident occurs and someone is injured on the job. They also promote high safety standards on site to prevent accidents. A general rule of thumb is that you want to hire a contractor or specialist for any problem that might arise during a home inspection. These include: Now you enter the area of contractors and subcontractors. What`s the difference? Think of it this way. When hiring an event planner for a wedding, golden birthday, or other celebration, don`t expect him or her to bake the cake, cook the food, grow the flowers, or play music. You pay the planner to use their industry knowledge and organizational skills to bring together the best baker, caterer, florist and string quartet in a coordinated effort to ensure the success of your event. The event planner is the entrepreneur, and the people in his Rolodex are trusted subcontractors. If you act like your own contractor, you can work if you have enough time to devote to learning how to get the job done. Even the project itself cannot be on a tight schedule. Knowledge of building codes, appropriate materials, proper construction methods, and safety – during and after construction – is also a key resource that a general contractor brings to your project. This knowledge will save you from having to learn when it`s too cold to pour concrete, how long the joint needs to harden before it`s painted, and why it`s absolutely necessary for the plumber to install a P-trap under your new sink.
This knowledge also allows a contractor to know which subcontractors are reputable and reliable and which no one should ever hire. A general contractor who has a long list of contacts from masonry professionals, carpenters, electricians, plumbers, HVAC contractors, landscapers, and house painters is worth more than you can imagine. Good subcontractors also tend to prefer general contractors with whom they have established relationships. You may find that electricians or plumbers who are willing to bid for your self-directed work are second-tier professionals that established general contractors don`t trust. Insurance company Nationwide notes that homeowners who act as their own general contractors can save up to 35% on project costs, including labor, materials, and equipment costs. (The Chicago Tribune estimates similar savings of 10% to 35%.) Ultimately, it`s up to you to decide if your work warrants a general contractor or if you can project yourself. But a general contractor could take some of the worry and stress out of your job so that when it`s done, you can sit back and enjoy the work. It`s in your best interest to closely plan your renovation so that it takes as little time as possible, but a general contractor is even more motivated to get the job done quickly. More time spent on your work means less time spent on other projects to make money. Contractors need to keep their order queue moving, not only to make money for themselves, but also to pay their subcontractors. Fourth, they can probably get better prices on materials and labor. It is simply the nature of the business.
They make more volume and already have good relations with subcontractors; Thus, they get better prices and can actually save you money in the long run. .