I’m preparing to build my own house. Or rather, have it built. Or perhaps, somewhere in between. I am capable of doing some parts myself, and am comfortable dealing with suppliers, banks, and contractors.
However, I would feel a lot happier with someone else looking over my shoulder to help coordinate the process. Am I likely to be able to find some one to fill this role? I’m not looking for some one to take responsibility: I’ll accept my own errors and ommisions. I just need an honest broker for advice.
Would this person typically expect a percentage, a flat fee, or work for an hourly rate? How should I look for someone? I think this sounds like Ubuildit, but I don’t think they operate in Canada.
If it sounds like I’m just going to get in over my head, pile on. But I’d appreciate any advice anyone can give. I’m not totally naive, but so far all my experience has been repair and renovation for family, friends, and a couple rental properties I own.
Amateurs talk strategy, Generals talk logistics.
Replies
It's a very narrow niche market you're looking at, but it exists. There are people who will do what you are looking for. Generally this falls under the term "project management" but I wouldn't get too stuck on definitions of that just yet. You want someone who has built, can build, knows the trades in the area and the market. They will undoubtedly also know the bank(s).
When you find someone you think might fit what you're looking for, you need to be able to sit down with them and first discuss what you think it is you're looking for, and be willing to get some honest feedback from them, i.e. you might say you'll handle some specific task and they might advise that that task is unwise without a background in it. I'd take the advice.
I know of one person who has done this on occasion, so I can only speak to what I know of how he structures it, since I'm not that guy. Early meetings clearly define what roles and responsibilities each party has. This might be that the owner has the final say on who gets selected as a sub or supplier, but the contactor, serving in an advisory capacity, is soliciting the bids, detailing the specific scopes of work to be bid, and asking for the bids, then providing that info with recommendations to the owner. That's what I see going on there. The owner is heavily involved, on site when possible, but they still have a day job. The contractor has other things they're doing as well, but the two of them communicate regularly, and the contractor is the one who's phone rings when a sub has a question.
Often people in your boat have the desire to perform a trade themselves. If you're good at it or it's your business, by all means. Just be careful if you aren't running at the full speed say as a painting crew. Your choice to perform some task will impact other trades as well as timeline. If, for example, you hang the drywall, you might find the finishers charging extra to fix things that are non-typical for them. When they bid, they assumed a set of circumstances which you have potentially not provided. They're not going to just say oh, well be nice and eat it. They have mouths to feed as well. That's my cautionary note.
In process, it will be very important to decide who you want subs to take marching orders from. You and contractor saying something different will yield a bad end result. So I'd think "chain of command" and put one of you at the top. If it's you, then the advisor can be on site and direct etc, but you get final say and changes have to go through you before they occur. Reverse it, you can put yourself in the position where you simply specify the desired end result and have faith enough that the person you hire has the wherewithall to get you there expediently and economically. Then support them!
Undoubtedly, this comes with it's own plethora of unseen risks and factors. Good communications up front and written documentation notwithstanding, you need to trust the guy to do the right thing. Not that that's an impractical thing, its just something to be aware of if your're not getting a warm and fuzzy feeling in your belly when you meet with a prospect.
I would think you could structure it as a defined scope of management tasks for the individual on a flat fee basis, with the option for them to assume additional roles if circumstances merit at some hourly fee. You might decide this is too frustrating and have them do more down the road. You might decide you could do it easily and the original gameplan is just right. You might get hit by a truck and be physically unable to direct work. But you don't want a half finished job sitting there cranking out interest fees while you recover. Cover your bases, think in terms of the duration of the job, take the advice you get (but hang on to the salt).
"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
Thanks for the reply: I really appreciate any suggestions I can get.
Yes, I will have to have a very clear relationship with this person, and everyone's expectations and responsibilities will have to be spelled out. Now: how do I begin to look for this person? Yellow pages? Breaktime help wanted forum? Ask around at suppliers?Amateurs talk strategy, Generals talk logistics.
Forget the yellow pages. Go VFR direct to someone who would know. Suppliers. You've probably got a local yard. They sell the lumber. They know the contractors, the reputations, the employees, and who's a deadbeat and who pays their bill on time."If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
We do this type of thing all the time but it certainly is not for everyone. It is not much different than a design/build project where the plans are incomplete and there is a lot of give and take between the builder and the owner. The main difference is that as the owner you are also acting as the general contractor.
We are carpenters and are physically present on our jobs most of the time. We are used to working with all our subs and making decisions for them. Doing this as a general contractor or as a lead carpenter working for an owner/builder is pretty much the same except there is much less responsibility and risk when working under an owner/builder.
We normally bill out at our hourly rate for this type of work. This comes to less than we would make on a fixed price job but our overhead is slightly less and our risk is much less. Not a bad deal.
You need to find someone who is willing to do this and that you are willing to trust. If you are not willing or able to trust a competent person to concientiously look after your interests, do not enter into this type of arrangement. Look long and hard for this person. Talk to anyone you know in the trades. Talk to small suppliers. Talk to people that you know who have had work done. Don't settle on the first name you hear. The right person will make your project a lot of fun. The wrong person will make the project a nightmare.
Don't worry to much about how you structure the deal. You can't possibly think of everything. Once again, the right person will be able to work out the details and the wrong person will find something to trip on. Good luck.
Great response man. And Amen."If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
Halifax?
I think Ron Budgell works in Halifax.
hope I spelled Ron's last name right ... title a thread to his attention.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
I'll try that. thanks.Amateurs talk strategy, Generals talk logistics.
That's the sort of thing I'd like to help you with...getting a little old in the tooth to do all the hard work myself. However, I'd add this - call on your local BI. Won't be able to name names, particularly, but if you asked a Q like "If it were your house would you choose A,B or C?" and whittle down the 'contestants' that way. Here in BC we have Homeowner Protection Office - if you are an owner/builder you are required to have certain insurances and assurances (inc not selling your house within 18 months), but if you hire a 'manager' you must pay up the various fees and insurances req'd for 10 years. And it's getting more stringent lately.All the best...
To those who know - this may be obvious. To those who don't - I hope I've helped.