Would using a subcontractor be cheaper than a general contractor?

Question

Hi,

I always read about people using general contractors and etc. However, because most general contractors actually just hire subcontractors and just manage the project, wouldn't it be cheaper to rather directly hire subcontractors ourselves?

By basically cutting out the middleman, wouldn't you save on a lot more money?

I am wondering what you guys think about this and if this is true or not.

Shannon Robnett · Answer

@Jimmy Lieu using that thought process would you use a 3rd year medical student for brain surgery at a vet clinic?  You would be cutting out the hospital and thus the middle man.  The answer is of course not!!!

The reality you are paying the general contractor to do a few things that are really important and they are not just dead weight.  Also if you really take the time to vet them, forge a relationship, they will become a resource that will help you get pre purchase pricing to help you purchase better.  But here are a few of the things that general contractors do besides drive around and look cool.

1. They will likely get better pricing than you will making their services about a wash.

2.  They are professionals and have a legal obligation to you to provide good quality service that meets all local and state building codes.

3.  They have insurance that will cover your project against negligence, faulty work and a myriad of other things.

3 They provide guidance and over site on the work as to quality and scheduling.

Besides while they are doing the job of taking care of the first job you have you will be able to hunt for another deal.

Matt Groth · Answer

I'm a gc, but had a buddy call the other day asking about a boiler leak, as well as some electrical work. He was having trouble getting people to respond. I had both to his house the next day. I also know timelines and efficiency in projects, you likely do not. Any money you may save, will evaporate very quickly...

Julio Garcia · Answer

Usually, but you run the risk of poor workmanship

Allan C. · Answer

@Jimmy Lieu if you know what you’re doing then you’ll save some overhead cost, but if you’re asking the question then by definition you don’t have enough experience to cut out the GC.  If your scope of work only involves two trades or less you can try to act as GC to learn the ropes for future benefit.

Don’t forget that if you have to pull permits, that takes time and other know-how to draft proper plans. Time = money, so think about where your time is best spent.

Would using a subcontractor be cheaper than a general contractor?

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