Hire General Contractor Vs Manage Subs Yourself

7 Replies

Early on the right thing to do is to always hire a GC before you have any knowledge. However, for flipping projects (additions, gut renos or new construction) do you guys manage all of the subs yourself or hire a GC and manage him?

From my perspective I think it is best to hire a GC and manage him. After all I am not interest in getting into the contractor business (which is what you are doing if you are managing subs) and if the deal doesn't work with a GC profit built in your margins and probably pretty thing. 

Another positive thing with hiring a GC is all of the time it frees up for you to do other things including finding more deals!

I know a lot of people come down on the side of managing subs instead so I am interested to hear everyones thoughts!

i went the hiring subs route for my current project and my time for other things has completely disappeared.  im saving money but it's very bad for time and it's harder.  

however im learning a ton that i otherwise wouldn't.

Time is the most valuable asset!

I had this debate on my current flip.  Contractor I had lined up bailed on me.  I was in the mode of deciding whether to waste a month finding another, or starting it on my own with demo and whatnot.

In the end I went with a GC.  The time it took me to line up JUST GC visits was a lot.... I figured take that time, and times it by 20 to get a few bids on portions of the project...  Let alone site management once its going.  Are you gonna drive to the house every night to make sure the non english speaking drywall crew locked it?  Let them in in the morning...?  In the end I had to be honest with myself and went with a GC.  A smaller flip with maybe only a couple moving parts, I will do myself....

I believe it comes down to scale. As a small time/full time/one at a time flipper there is no reason not to manage the subs yourself assuming you are prepared to be on site daily. Managing subs is a full time job. Like operating a day care, turn your back and they are getting into trouble.

Anything other than that and you need/should have a GC.

Exactly. I still work my day job half time. And super dad coach the other daylight hours. So it’s not an option.

The GC should be able to give you a portfolio of some sort. If not, keep looking. 

Managing subs all the way like any other thing its hard at the begining but eventually you will build relationships with these contractors.They will know what you expect and what not but if you dont want to struggle at the beginning well go with the GC

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