If you are building a new home or doing a significant remodel, what are your building options? One option is to use a general contractor. A general contractor is generally a jack of all trades. They can do limited amounts of electrical work, plumbing, carpentry and other trades but they can do small remodels or even build homes or large structures for which they use subcontractors for most of these trades. I believe that most general contractors are used to doing various trades and small remodels but the large remodels and building of new homes are rare for most of them. This means that 80% of the general contractors may not have the experience or the bandwidth (due to many small projects) for a significant remodel or new house construction. If you go this route, make sure that you ask for relevant references and do some serious due diligence.
A home builder is a subset of general contractors that are more used to significant remodels or new constructions. They have more experience for that type of work. However, I have also seen home builders that have 15 different licenses and do all of the work in house. Doing all of the work “in house” can be good, but it could cause a bottleneck due to limited staff. It may also allow the use of unlicensed subcontractors and you might have inexperienced people working on your house. I have seen home builders that have given prices that have been unbelievably low and some that come in near the $600/sq ft mark. I’ve been tempted by the home builders that give a low price, but then red flags usually start appearing and then I trust my gut. Keep in mind that whether you go with a home builder or general contractor, you will still be spending significant time choosing and purchasing materials during the second half of the project (e.g. electrical fixtures, tile, paint color, plumbing fixtures, flooring, etc.)
Being an owner-builder means that you are your own general contractor. Most of my projects that I have done has been as an owner-builder. Like anything, there are advantages and disadvantages. The advantages are: 1) that you will most likely save 20-40% on your project, it will probably go 30-40% faster (if you have the time to commit to the project), 3) you have more control on the project and change orders, and 4) you have less risk of a subcontractor not being paid and filing a lien on your property. The disadvantages are that you carry more risk on the project and it will take up more of your time. I wouldn’t build a new house on your first attempt as an owner-builder. However, if it’s a small remodel, you should be fine. For something with significant amount of structural work, it may be advantageous to have a GC or home builder do the structural component and systems (electrical, plumbing, HVAC, and fire sprinklers) and you can “owner-builder” the finishes. City inspectors can be very helpful towards owner-builders and there are many resources out there to help. Email me if you have any questions.