subject: Are You Considering Subcontracting Your Home Renovation Project Instead of Hiring a Contractor? [print this page] To sub or not to sub: To sub or not to sub:
With the current economy in the toilet and foreclosures running rampant most people who might have "upsized" or "upgraded" to a new and/or larger home have abandoned the idea. Even with historically low interest rates values on existing properties have plummeted to a point where it is difficult to sell, if not impossible.
This leaves many people in the proverbial "lurch". Remodeling to upgrade or enhance market value may or may not be a viable endeavor in this economy. However when you need more space or a more functional environment you generally have to "do something".
The scenario lends itself to a DIY ("Do It Yourself") approach for those who have the expertise, tools and time. Those who lack any of these requirements are left with the option of hiring a contractor or subcontracting the work themselves. ("Subcontracting" essentially means that you, the homeowner, become the general contractor and as such you hire each and every subcontractor needed to accomplish your project, you contact the materials suppliers and order what is needed that the subcontractors don't provide and you pay each and every party individually, often on a weekly basis.) With this in mind, consider the following:
Many homeowners are aware that they can save a fair amount of money by not having a general contractor involved, i.e., saving the cost of his overhead, equipment and fee, etc., not to mention his markup on all of the subcontractors. This is actually quite true. Most homeowners planning to do a renovation hear stories of other homeowner subbing the work out and saving big money. With this they figure "If he did it there's no question I can do it too". However, the odds-on probability is that 98% or more of homeowners have neither the time nor the expertise to do this successfully. You will suddenly be trying to coordinate and oversee several totally independent entities, each of whom will be very aware that you have minimal experience and/or knowledge of the process. If you work full time you will likely be pestered at your job by phone calls all during the day. You will likely come home to a mess, work not nearly as far along as you had anticipated and worse. Chances are that you will end up with extra costs for reasons you don't remotely understand, sloppy workmanship, regular "no-shows" on the job site, etc. There is a better than average chance that there will be a subcontractor show up to do some work that cannot be done until another subcontractor or workman completes his work but the latter did not bother to finish his work on time or maybe he just decided to stay home that day. Guess who pays for the time and costs of the workman who did show but cannot do his work. If you should decide to play the role of general contractor and hire all the subcontractors yourself at least consider interviewing and checking backgrounds and reputations on each subcontractor just as you would with a general contractor. Many will ask for "out front money" which is a sure sign they are not all that financially stable and/or that their credit in the industry is shaky at best. Is this the type of person you want to hire?
Don't take this wrong. Some folks can indeed handle the situation but be aware that those who do not have experience in doing so and the free time necessary to make it work will more than likely rue the day they ever thought of trying. There is a very good reason that general contractors exist. Be aware of it.
Are You Considering Subcontracting Your Home Renovation Project Instead of Hiring a Contractor?
