Do It Yourself?

It has become popular for homeowner’s to “do it themselves” in an effort to save money. While taking on small projects can in fact save money, it becomes risky when the stakes rise. Over the last decade, people have flocked to the idea of building their own homes. Instead of hiring a General Contractor, they act as the project manager for their construction project. On one hand, it eliminates the fees from the builder, but these savings can quickly dwindle away.

Building or renovating a home is a complex process. In this complexity, a novice can become lost – or stuck – at a seemingly unending series of stages. When thinking of construction, most homeowners gravitate towards items they can tangibly feel – lumber, roofing, windows and cabinets. However, the success and failure of a project reside not in material choices but in the developmental costs of the project. A quick survey of do-it-yourselfers will show most of them are unfamiliar with such items as permit fees, utility connection costs, property easements, plan check requirements, and labor negotiations. If they do not pay attention to these items, the result can be thousands of dollars worth of cost overruns.

This is where hiring an experienced builder can pay dividends. While their services are not free, they can help homeowners avoid costly mistakes that can derail a project. Because builders are constantly dealing with building departments, utility companies and subcontractors, they have a working knowledge of the process. This knowledge can help a homeowner not only finish their project on time, but also on budget.

Another potential pitfall confronting do-it-yourselfers is the cost of time. If someone is building their own home, they may want to participate in as much construction as possible (hanging siding, painting, installing drywall, etc). While performing these tasks will save money from a labor standpoint, the savings can dwindle when compared to the amount of time it takes a novice to complete the project. In most cases, a homeowner will be using a construction loan to build or renovate their home. With these loans, interest is accrued daily during the entire project. The cost of daily interest will vary depending on the loan amount, but it some cases it could be a hundred dollars or more per day. If it takes a homeowner three times longer to complete a project than a subcontractor, potential savings turn into verified losses.

Another risk taken on by do-it-yourselfers is the stress of managing the project. Balancing multiple subcontractors (and problems), material suppliers, and deadlines can test the patience and sanity of a novice. This stress can carry over to life at home and in the workplace. In hiring an experienced builder, the stress of managing the day to day activities falls squarely on the shoulders of the contractor. When a laborer does not show up for work, the builder is responsible for picking up the slack. If materials are delivered incorrectly, he or she solves the problem with the material supplier. While these problems may seem trivial, cumulatively, they can become overwhelming.

When analyzing the viability of doing a project, homeowners should account for the benefits and drawbacks of doing it alone. While savings can be achieved, they can also disappear just as fast.