Any great tips in becoming your own GC?

Question

Hello BP fam!!! I'm still considering myself a newbie to investing as I've got one investment property.  I'm interested in pursuing a triplex in need of a full gut renovation.  I haven't had the best dealings with contractors for both my primary home and my rental.  I was reading an IG post about becoming your own project manager. I've done some renovations, can use power tools, measure, help with installation of cabinets, etc. so I have some skills to help my projects along.  I have connections with different trades and was wondering if anyone has some tips on the pros and cons they've experienced with becoming their own manager on projects. I work full time, but to have the ability to cut down on the contractor's overhead cost and save myself some money is appealing.  Any info is greatly appreciated!

Mike Reynolds · Answer

A GC/PM true definition is being a referee and a babysitter. Subs will fight with each other. The AC guy thinks he has the route in the attic until the plumber comes and cuts his stuff out for his drains and vents. Then the fight starts. After that  is over with the electrician comes in and cuts the rest out. You have to be a mediator and big boss when it comes to that. You have to know that drain lines take precedence and tell the other trades that "Yes, you need to move your duct work because it is in the way of my drain line" Make your electrician find another way to run his conduit and keep the peace.

It can be done though. I think you can do it if you put your mind into it. People like when you ask them questions about their trade. They like to show you what they know. They want and need the business. Your money is just as good as the 100 million a year contractor. Treat them right and they will treat you right. It is about relationships. Create a good relationship and you will have a sub for life. Listen to their issues with empathy. If it is doable then do it. If not, explain why not. Work together instead of against each other. You both want to make money.....then make it.

Now for the bad. Lets be brutally honest. There will be some men who will not respect you being a woman and "doing a man's job". They are still out there as you already know. Cut these guys loose as soon as you find them or win them over if they are exceptional and possibly worth it in the long game. My wife was my partner in my business when we had it and I know the frustrations she went through. My plan was to cut them loose right off but she was able to salvage a few really good ones (she is smarter then me anyway) and they are still friends this day. Make them hear you and respect you or cut them loose.

George W. · Answer

Everybody thinks being a GC is easy and somehow they can do it better than someone who's been doing it for years. then think they think they'll save money somehow. Sure you might know how to use a power drill and a tape measure but that's not where you save or make money in construction.

You save money by having experience and knowledge in the technical aspect of construction. Knowing the ins and outs of different aspects and understanding the reason why codes are what they are. Also knowing what your local jurisdiction requires as far as laws and contracts. In most places if its not your primary house, you need to have a contractors license to be a GC.

Being a good GC takes a wide range of experience in different trades. If your subcontractors know you're not experienced they'll take advantage of you and take shortcuts because people are lazy. Also your more prone to have subs walk off jobs from you because you dont send them work all the time. A good GC keeps his subs busy all the time so they'll listen to a GC. Also a GC should have great connections at supply warehouses and have more pull when there's issues with a product.

Scott P. · Answer

As far as recommendations, I recommend having enough $ to pay each sub as their work is completed, and even pay them weekly if they'd like.

This plan has allowed me to attract the subs I want and keep them on my jobs even though other builders do a larger volume of work.  Commonly in my area other builders don't pay subs until a bank or Owner pays them

Billy Smith · Answer

Need to micro managing be on site every day or let them think you will.

Be able to say this is wrong be firm but not over top that will never work with blue collar workers.

Keep the budget close check and re check numbers.

Avoid up front paying labor that is not done yet this is a BIG NO!

Pay only as the work is done if they need a draw.

Offer to pay the materials cost try to avoid the up charge on this, have them show you the itemized bill for the materials.

Getting your job pushed back to the end of the line can happen keep up ask when they  are showing up if not when and why?

Make them pull the license for the job double check to make sure it is right .

I show up some time with a large pizza if it is going well. You want these folks to like you don’t get too cozy.

Cassandra Sifford · Answer

@Mike Reynolds  I greatly appreciate the response!  I know that I don't have all the knowledge to quit my day job and become a GC, but the motivation is there to self manage.  I'll have to educate myself in the process, but I'm hopeful to get there one day.  Whenever I work with different trades I ask questions and hang around to see the process when I can.  I feel that some may not be receptive of a woman GC or project manager and like you said, cut them loose. They'll jack my project up and make it harder for me to get to the finish line.  I'll keep plugging along with learning and connecting with great contractors to make things better in the future!

@Michael Ablan  Thank you for the thoughts!  I'll stick to what I know for now and introduce more knowledge as I grow.

@Matt M.  I've done remodeling on properties and used to be a kitchen and bathroom designer for 8 years.  I'd visit the job sites and help my guys with installs from time to time.  I won't quit my day job tho LOL

Matt M. · Answer

@Cassandra Sifford

If you have no construction and/or remodeling experience, don’t do it.

Michael Ablan · Answer

@Cassandra Sifford  -  Haha.....save yourself the pain and stick to what you're good at and know.  You truly need a fairly indepth understanding on all construction trades and code in order to even begin to do it properly so that you're not getting screwed by subcontractors or redoing things because they weren't done to code....and that's just getting started.  Construction workers are a completely different breed of people and managing them properly has it's own unique set of challenges and requirements.

Stick to what you're good at and hire the rest.  Trust me

David Tyrawa · Answer

Funny with the electricity it used to scare me also. I helped wire 2 basements remodels with a electrician and read about it. Now I do my own wiring. Just have to refer to a book from time to time for odd things like 4 way switches. I think it was one of the easiest things I learned. Just need a cheap tester to see if power is there and you can easily diagnose issues by process of elimination. ( And no I didn't replace my electrician after he trained me it was another friend of mine).

Pat L. · Answer

We have done it several times & it's WORSE than 'herding cats'. You need to have a lot of experience & have access to subs you can trust. Then again we have used GC's, who also became MIA (the reason we hold back 20%) & then finished it ourselves.

Our neighbor is going through it now on a major rehab to his own home with a small addition & blew out the roof for a couple of dormers. The rehab is ONGOING yet it began back in April 2019. He still has a lot of trouble getting good subs & has then paid higher rates to get the jobs completed after one or more of his subs fade off to other more lucrative jobs. In fact one day last summer when the building inspector showed up a group of subs all jumped into their van & took off. I have seen several different electrical & a couple of different roofing companies there ???

His roof was completely stripped & tarped (for 3-4 months) including the gutters so the JUST rehabbed basement (that they were living in) completely flooded as the sump pump was overworked & literally cooked itself. They had to move out to get the home livable again. Then the roofing tarps shredded over a high wind weekend. He then had a different company come in to dig up the perimeter, AGAIN, to correct the weeping tile issues.

The job is still not complete, in fact the siding is still missing with tattered plastic wrap barley holding back the snow, ice & rain. I bet it would have been cheaper & faster to just move & build a new home.

Becoming an amateur GC to save money? I doubt if he would recommend it.

David Tyrawa · Answer

I am one and I want out. You need to be available for every little decision. You will spend your time figuring out how to get everything to work properly. Need back round knowledge on all the trades. Need to be able to baby sit subs you hire. It's not terrible but it's full time working and baby sitting

Any great tips in becoming your own GC?

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