Dumb idea being my own contractor on commercial construction project.

[Arthur Kineard]

I think I want to be my own contractor for a pretty large commercial project. Am I crazy for doing this? I could just hire a contractor to do it but my experience here with contractors has been they are SLOW. In Panama City contractors are charging 10-20% of the construction cost and obviously marking up prices on materials when possible. I am guessing the project will cost and yes this is a guess at this point, $4 million. That means the contractor will make $400,000 to $800,000 on this project. This gets my brain going into lateral integration mode hardcore. I am thinking this is not going to be the last project I am going to do in this area. I plan to build an apartment complex on other property I own in the area. 

The GC contractor that is redoing my house has offered to allow me to use his license. So either use his license for a fee and hire a superintendent to oversee the project OR open my own GC company hire a RMO or RME with a Florida GC license internerally. I am leaning towards a hybrid of the two for insurance if someone flakes out.  This is construction afterall. 

Project will be 96000 Sq/Ft of warehouse space.  Six building 80'X200'. Each building is divisible into 4000 sq/ft, possibly 2000 sq/ft. 

I own the property free and clear and have entitled it for this project. It is about 8 acres undeveloped, so trees and fields. 

It is located on main hwy with all utilities accessible including sewage, slightly outside of Panama City FL. 15 min to east side of town, same for what we call downtown and same for what we call the west end of the beach. 10 minutes from the airport.  This is one of the areas Panama City is growing into. 

We have a serious shortage of small warehouse space like this. I believe at a minimum we can rent it out at $6 per sq/ft per year but we will shoot for $12. 

I think I can use the land as the down payment but regardless I can come up the difference if necessary. 

I own a business that affords me a lot of free time and my schedule is very flexible. 

My experience in construction is limited but I have some and fundamentals are there.

Please poke holes in my plan. 

[Henry Clark]

Quote from @Matthew Paul:

When you hire a GC , you are hiring them for who they know , as much as what they do .  @Arthur Kineard You are at a disadvantage from the start , you are not in the "click" .  A good GC knows who to call , and especially who not to call. They know the inspectors . The engineers . etc .  The subs will charge you the top dollar since you have no record with them . It will take you longer and probably cost you more 

 Definitely agree.  Or you need to be their best customer.  You get a bill. Pay it the next day at their office.  Don’t make a lot of changes.  Think ahead.  If it’s hot take an ice chest full of drinks and drop off once in a while.  Buy lunch every once in a while.  Don’t try to become friends with the crew.  Just let them know you appreciate it.  When they need a decision make it.  Don’t go shopping for a nickel.  Have had all of our contractors for 6 to 9 years.  Same with bankers and engineers.  Part of our team.   Meet with city and county planners up front.