If you are considering being your own contractor for your remodeling job, read here first to see if you have what it takes. We’ve found some important facts from an instructor at Emory University that you should consider before you take on the job.

Q: How much money can one save?

A: If you live in a hot housing market where there’s lots of activity (like San Francisco), then the remodeling contractors are probably making 25 to 30% profit on their work. If you are inexperienced, you will not save that much. Instead, on your first few projects, you could expect to save 10-15% due to novice errors and the lack of volume discounts on labor. If 10-15% is sufficient or if you hope to do more projects in the future, then it may pay to be your own contractor.

Q: What personality traits and other characteristics are required to be your own contractor?

A: It helps to be control-oriented, be self-motivated, be able to give plenty of attention to detail, have plenty of time available, not get stressed out too easily, be organized, be able to see the big picture, be good at scheduling, have low expectations of contractors, and be a good negotiator.

Q: How can you learn to be your own contractor?

A: There are continuing education courses available at local universities, such as the one I teach at Emory University. Also, there are some books available on the subject of how to be your own contractor; however, I haven’t found one yet that I could recommend. The best way to learn is by diving in, doing it, and asking the contractors questions as you go along.

Q: What can you expect?

A: As you attempt to be your own contractor, you may be surprised to experience just how irresponsible and unreliable human beings can be! It is likely that you will have contractors who do not show up when they say they will. They will probably fail to return your phone calls, forget what you tell them, and neglect to ask you about important decisions. However, if you know this in advance, you will be prepared to be extra vigilant and energetic in executing your tasks. It is not easy to be your own contractor, but it can be very satisfying to overcome the many challenges.

Q: What is the first step to be your own general contractor?

A: First, you need to check with your local residential building inspection office for your municipality. You may be required to obtain a license. Hopefully, however, you will be exempt if you are not using corporate entities for your house ownership or your general contracting activities. In other words, If Joe Smith is general contracting on a house that Joe Smith owns, then it’s probably not going to require a license. However, if Joe Smith sets up ABC Corporation to renovate a house owned by XYZ Corporation, then a license may be required.

Contact an attorney or CPA for advice regarding whether or not it would be worth it to set up a corporation for any reason.

Q: Will you need any tools to be your own general contractor?

A: You will probably need is a 25′ tape measure to confirm the correct placement of 2×4’s, fixtures, etc. Plus, you will need an expandable folder to organize each trade.

Q: How will you know how much labor is supposed to cost?

A: You will not know for sure, but as discussed in Finding Contractors, it is important to get multiple bids and compare them. As with almost anything when trying to be your own general contractor, ask an architect or other professional for help when you have a question.

Q: What if you are afraid of making costly mistakes?

A: Let’s face it. If you have never tried to be your own general contractor before, you will make mistakes. However, you will also save a tremendous amount of money that you would have otherwise paid to another general contractor. In my opinion, if you have the time and desire, it will usually be worth it to try to be your own general contractor.