Consider becoming an owner/builder for my project. Looking for tips.

[Raj Sidharthan]

Dear friends,
I am planning to build an ADU at my primary residence. I have an approved plan and I have been talking to general contractors. The price I am getting is way more than what I think the project should cost. I think that the markup that the general contractor takes is what makes the cost go up, so I am considering becoming an owner/builder to save some money.

Home improvement is not new to me. I own 5 properties and I have a lot of experience in hiring contractors for repairs and modifications. It's just that I have not done anything as big as this.

Any advice for becoming an owner/builder would be greatly appreciated. I dont know what I dont know :)
What should I get in terms of insurance?
How do you make sure that something that a contractor does meets the city's approval criteria. How would you write contracts in a way that I am covered against workmanship that the city does not approve, in case that happens.

Thanks in advance
Raj

[Chris Seveney]

@Raj Sidharthan

Have you actually priced it out using subcontractors to gauge the difference in pricing. While you may “think” the GC costs are too high have you confirmed it

Also look at a schedule and if the GC finishes 3 months before you would finish, does allowing you to rent the place out faster make up the difference ?

How much is their cost and how big is the adu ?