Should You Hire a Home Builder or Manage the Project Yourself?

House Framing

Over the years of building homes, I have ran into this question several times from clients that were seeking to save money on building their home by filling the role of the General Contractor themselves. So let’s take a closer look at the viability of this question.

Can you Be your own Builder

Most building departments do allow for property owners to act as their own home builder and pull the required permits themselves. So it is absolutely possible to do it yourself. As builders, we at Drengr Solutions typically charge 15-25% markup for our services. For example, here in Colorado the average new home is selling for $480,000. The physical construction costs around $400,000 and the home builder would make $80,000. This seems like a reasonable place to cut a significant cost from the project. If you reside in El Paso County check out this resource https://www.pprbd.org/Information/HomeownerPermit

Should you be your own builder

On average, the management of building a home takes 1280 hours. So building a home would be a full time job for most of the year. The $80,000 that the builder is getting paid is offset by 1280 hours x your hourly rate at your job. 1280 x $40/hr= $51,200.

Established home builders often receive discounts for both building materials and labor. We estimate that we buy materials discounted at about 13% due to the volume of purchasing. For labor we are just over 18% discounted on average. We have found that around 55% of the cost of home building is in materials, 42% is in labor, and 3% in permits and insurance. Going back to the example above, we have $400,000 in physical costs (outside of the builder). This would equate to $28,600 savings in materials and $30,240 savings in labor.

Home builders are required to be licensed General Contractors. As a general contractor, we will have robust contracts written by a legal team that protects the client. This is actually one of the best reasons to use a professional builder. The language in these contracts will provide the basis that ensures that you receive the materials and quality that you expect and are paying for.

In conclusion, having a professional builder will:

  • Save money (pay $80,000 to save $110,040)

  • Reduce the likelihood of costly mistakes¬†

  • Give you fully vetted subcontractors

  • Place liability on the builder for mistakes and problems

  • Give you professional guidance and recommendations

Experience Matters: Building Your Dream Home

It's not just about saving money, but also about ensuring that the entire home building process goes smoothly. Experienced home builders have a deep understanding of the local building codes, regulations, and the permitting process. They also have a team of trusted subcontractors who have been vetted and have years of experience in their respective trades. At Drengr Solutions, we bring over 15 years of experience in the home building industry to the table. Our team has completed hundreds of projects, from design to construction, and we understand the nuances of building a home that meets your needs and exceeds your expectations. Don't take on the role of the general contractor yourself and risk costly mistakes and delays. Contact us today and let us help you build the home of your dreams.

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