When it comes to managing a construction project, many people may consider taking on the role themselves to save costs. However, what many do not realize is that hiring a general contractor can actually be more cost-effective in the long run. In fact, a recent survey by HomeAdvisor found that homeowners who managed their own projects spent an average of 12% more than those who hired a general contractor.
The cost savings of hiring a general contractor are not just limited to residential projects. In the commercial sector, a report by the Construction Industry Institute found that hiring a general contractor can result in up to 15% cost savings compared to self-managing a project.
One reason for this cost savings is that a general contractor has established relationships with subcontractors and suppliers, allowing them to negotiate better prices for materials and labor. As Michael Anschel, CEO of Otogawa-Anschel Design-Build, notes,
“a contractor can provide pricing leverage due to the volume of work they do.”
In contrast, an individual managing their own project may not have the same bargaining power, resulting in higher costs.
In addition to cost savings, hiring a general contractor can also save time and reduce the risk of errors or rework. A general contractor can manage schedules, budgets, and timelines effectively, ensuring that the project is completed on time and within budget. This can be especially important for complex projects where multiple teams and subcontractors are involved.
As Steve Padgett, Vice President of Operations at Skyline Construction, explains,
“a contractor is often able to accelerate schedules and get things done faster because they have the right resources and expertise in place.”
On the other hand, an individual managing their own project may not have the same level of experience or knowledge, which can lead to delays and cost overruns.
Furthermore, hiring a general contractor can provide peace of mind and reduce stress for the property owner. A general contractor is responsible for managing all aspects of the project, from scheduling to quality control, allowing the property owner to focus on their own priorities.
In conclusion, while it may be tempting to manage a construction project yourself to save costs, the reality is that hiring a general contractor can result in significant cost savings, as well as time savings and reduced risk. As the saying goes, “you get what you pay for,” and in the case of hiring a general contractor, you get a team of professionals who can ensure that your project is completed on time, on budget, and to the highest quality standards.
