Owner/Builder Guide: Building A Home Without Hiring A General Contractor
If you were to describe yourself, you may fall within one of these categories: owner-builder, self-builder. DIY builder, owner-contractor (for those of you with a background in the construction industry), owner-developer, principal contractor, or comment below if you’ve heard of others…either way, you’re taking on this project with yourself at the point.
Operating as a General Contractor for a home construction project, whether it’s an addition or a full-scale new build, requires research–which is why you are here.
As an owner builder you have the opportunity to take advantage of significant cost savings—this study suggests as much as 15-30% by not hiring a General Contractor. However, while the financial benefits are appealing, the process demands an immense amount of time, organization, and attention to detail to ensure success. There is of course, the possibility of the project costing more in terms of budget, time, stress, and/or other unforeseen costs in construction.
As an Owner/Builder, you will assume the responsibilities that would traditionally fall under the General Contractor’s purview. These responsibilities may include, but not limited to:
Obtaining architectural and engineering plans
Requesting and obtaining subcontractor proposals
Awarding subcontracts and managing payments
Securing the necessary building permits
Ensuring inspections are completed and approved by the Authorities Having Jurisdiction (AHJ)
Purchasing and providing materials
Overseeing the overall timeline and quality of the project
Financial Challenges for Owner/Builders
For owners who choose this route, securing bank loans can sometimes pose a unique challenge. Banks often require a detailed, line-itemized breakdown of project costs, which is typically prepared by a General Contractor. Without a GC’s pricing, owners may struggle to provide the necessary documentation their bank requires.
This is where VEN Consulting can step in–we offer professional estimating services, providing owners with a comprehensive ‘VEN Bid Spreadsheet’ that outlines the estimated building costs for the project. This tool can be presented to lenders to facilitate loan approvals, ensuring that financial roadblocks don’t hinder the progress of your project.
Services We Offer To Help Owner/Builders
To help owner builders manage the complexity of their projects and alleviate stress, VEN Consulting provides a range of tailored services to help during the build process, some of the most requested include:
Draw Reviews
Typically Draw Reviews happen monthly. We offer a one-time Draw Review that can be utilized just once or month-by-month. This is a cost-effective way for you to bring in our expertise for a particular phase of the project.
Here is what’s included in this one-time service:
Jobsite Visit: We make one visit to the jobsite to assess completed work, ensure proper materials have been delivered, and confirm any other specific details included in the monthly draw.
Draw Spreadsheet: We prepare a detailed draw spreadsheet for the bank and for your records.
Face-to-Face Meeting: We then schedule a Video Call or In-Person Meeting to confirm draw amounts that have been completed onsite and outline the anticipated work for the next phase.
Revisions & Submission: Post-meeting, we will make any needed updates or revisions to finalize the spreadsheets, then submit them to the client and/or bank.
Project Management
Management and supervising the actual construction of the project, as an Owner/Builder, is quite a responsibility. Organizing and managing the invoices and payments of materials and sub-contractors is another animal itself.
Here are a few ways VEN can help manage your project and ensure the fiscal responsibility:
Scope Reviews: Review and confirm included and excluded scopes of work and materials before awarding contracts.
Contractor Recommendations: Refer and recommend trusted contractors and manufacturers.
Warranty Management: Obtain subcontractor and manufacturer warranties.
Invoice & Change Order Approvals: Review and approve invoices and change orders to ensure accuracy.
Jobsite Visits: Verify completed work and materials onsite for accountability.
Progress Reports & Quality Control
As an Owner/Builder, you will be in the thick of things running your project and keeping it moving. Having an extra set of eyes never hurt anyone, and in the construction world it’s pretty much mandatory by most contractor standards. Project documentation (including photos and video) of the build, saves you time and may be useful in the future for multiple unforeseen reasons.
Here is what’s included in our Project Management service:
Jobsite Visits: Regular site visits to track progress.
Photo Documentation: Organize a timeline of project photos.
Progress Reports: Provide detailed updates and documentation.
Scope Verification: Confirm completed work onsite for quality assurance.
Closing Thoughts
While taking on the role of an Owner/Builder can be a rewarding way to save costs and maintain control over your project, the challenges of managing such a complex process should not be underestimated. VEN Consulting’s expertise is designed to support you at every stage, ensuring your project stays on track, within budget, and meets the highest standards of quality. Whether you need assistance with estimating, building permits, project management, or monthly progress reviews, VEN is here to help turn your vision into reality.