To build or not to build...

[Brat]

The other issue when you are acting as your own general contractor is the leverage you have with a sub. Usually the general contractor has an ongoing relationship with the subs, if they screw up on this job they won't get another. When you are a one-off general contractor you don't have that leverage - except maybe posting on Ange's List.

 

[pb4uski]

....The permit and plan review time in cities is often 4-6 months ...

That's interesting, I got my permit in the mail two days after I dropped it off at the town clerk's office.

 

[pb4uski]

I wouldn't do it. But then again, our last building project got us very familiar with the California Contractors State Licensing board, the aribitration process, the state attorney general's office, learned what an administrative court is, how to collect on a bond, what a mechanics lien is, etc.

Lets just say we're a lot poorer than we would have been, and the original GC is no longer licensed. ....

Wow. Our experience was totally different. I acted as the GC and the builder was a high school friend who has a good reputation in the area. We didn't even have a contract - just an understanding that he would bill me for materials (all obtained through one local lumber yard) at his cost (which was 15% less than my cost) plus $x per hour for him and his employee and that the labor would not exceed $xx,xxx. He recommended subs for plumbing, heating, electrical, stonework, spray-foam insulation, etc. but in most cases I ended up using local guys who had previously done work for me or people I heard of by word of mouth. Each sub was a handshake agreement too. From demolition to move in was ~5 months and we ended up ~10% over budget but as a consequence of decisions we made along the way to go with better materials.

We had one sub doing tilework that I wasn't keen on that I had him finish up a portion of what he was supposed to do, paid him for that work and then hired another guy for the remaining work.

 

[Brat]

Relationships are very important in construction. Even then someone who really knows construction should oversee the work in progress to prevent expensive errors.

 

[bld999]

Relationships are very important in construction. Even then someone who really knows construction should oversee the work in progress to prevent expensive errors.

Owner-builders also have to be honest with themselves about their opportunity cost. The typical 15% fee for a seasoned gc frequently ends up being a bargain.

A one off custom designed home requires at least half time supervision, and the need is on the job's schedule, not the supervisor's, so you are "wearing a pager". Some people are well suited to the task, most are not. at least half that I am aware of end up spending more $ than if they had a firm bid tied to a scope from a pro builder. [ex bespoke builder here]

I am constantly amused at the new trend to "blog" about homebuilding projects by new owners. They seem to think that all the striking experiences are happening for the first time in history, and to them!

As homes are often the largest purchase decision and asset in most people's lives, also the potential errors are large in decision making on customs. This can happen with or without pro help.

 

[someguy]

Thanks again to all the thoughtful (and sometimes humorous) input. A final decision still hasn't been made, but I think we are now even more tuned in to one particular local builder based on some of the feedback here. They are more like a traditional cookie cutter builder in that they GC the project and they also make guarantees on price and timing (with a few exceptions for things they really can't control). Although most people find something the builder has already done and tweak it, if we want, we can sit down with their architect(s) and start from scratch.

DW and I are still discussing the merits of doing something now. I am concerned about giving up flexibility. Even though we own our place now (with a low rate mortgage), it's in a very popular area and would sell quite quickly.

 

[Brat]

That sounds like a good option. The two of you should make a list of your needs and wants.


Another item on your to-do list would be to talk to a mortgage firm about a construction loan that would convert to a traditional mortgage at a favorable rate.

 

[SkisALot]

I, too, moved into DH's house and spent the next 33 years making it mine. It is so much mine now that he wants to sell it and I don't.

 

[someguy]

A new wrinkle/update on the situation. The DW seems quite amenable to being able to spend some of the nastier weeks or month (perhaps eventually months) in a nicer/warmer climate. Things are still fluid, though.

 

[Brat]

This would be a great opportunity to try out destinations on your retirement short list. I strongly suggest you stay for a month because in that time you will be living more like residents than vacationers.