Hiring a GC vs. Managing Subs, what’s Better?

Question

Hey everyone!

Do you guys prefer to bite the bullet and hire a full General Contractor (GC), or do you step into that Project Manager (PM) role yourself and just manage the subcontractors?

I get the obvious trade-offs. GCs make life way easier but man, that 10-20% fee hurts the profit margin. Managing your own subs saves you a ton of cash, but it basically eats up your life with endless scheduling and coordination.

The thing is, it's not always just about the money. A lot of the time the hardest part is actually finding a good GC you can trust. We've all heard the nightmares about GCs who disappear, pad the schedule, or do sloppy work.

So what's the verdict for your projects? What has worked better for your bottom line and your sanity? Are you Team GC because you need the time back, or are you Team Self-Manage because you want to keep that extra 15%?

Bo Smith · Answer

This is the eternal tradeoff and honestly it depends on your deal volume and tolerance for operational pain. If you're doing 1-2 flips a year, hiring a solid GC is probably worth the 10-15% fee. Your time and sanity are worth something. If you're doing 8-10 flips a year, self-managing starts to make sense because you've built the relationships and systems.

The hidden cost of self-managing is the slow creep of scope changes, timeline inflation, and subs getting pulled to other jobs. That "saved 15%" often evaporates once you factor in delays, rework, and your personal time. I've done both. Self-managing when you're starting works. Scaling it kills you unless you hire a project manager (which eats half the GC fee anyway).

Real talk: most investors overestimate how much they actually save managing subs themselves, especially their first couple of deals. The best GCs are worth the fee because they have relationships, can get subs quickly, and take the scheduling headache off your plate. Bad GCs are the problem -- find one with references and established crews, and the fee becomes invisible.

How many projects per year are you running right now?

Alioune Camara · Answer

Doug, It really comes down to deal volume and experience. Early on, most investors overestimate their ability to self-manage subs. Yes, you can save 10–20%, but if delays stack up, inspections fail, or subs don’t show, that “savings” disappears fast in holding costs.

If you’re doing 1–2 projects a year and have a flexible schedule, self-managing can make sense. But once you scale or your time becomes more valuable, a solid GC is worth the margin hit — especially if they keep timelines tight and quality consistent. Speed often matters more than squeezing every dollar.

The real edge isn’t GC vs. self-manage — it’s having reliable subs either way. A bad GC is worse than managing yourself, but a good one is a force multiplier.

I lean GC once projects get heavier or if timeline risk is high. Profit is important — but so is sanity and velocity.

Ron Dancy · Answer

GC that has a solid crew or subcontractors vs running yourself too many moving parts. Maybe save a few bucks but is it worth the headache.

Bruce Woodruff · Answer

You might find a newer/younger GC to work with that will let you do some of the work. Most won't though, and here's why: 1) you will be slower, 2) you will not be as skilled, even demo has a right and wrong way (I've had people cut a roof truss, then I have to call an engineer, etc) 3) you will be in the way, borrowing their tools, asking questions, etc

Better to just let them handle everything....

Ron Dancy · Answer

Right Bo. Save yourself the trouble.

Bruce Woodruff · Answer

As a longtime GC, I'll say (of course) 'hire a GC'... The 15% you expect to save is not always there. Most good GC's will be able to get Subs and Materials at a discounted rate that you will never get....so the actual cost to you may be close to the same.

That way, you don't have to: 1) deal with the Sub's crews (you don't know anything about the trades and can be taken advantage of easily), 2) Deal with City Inspectors - they hate dealing with homeowners/Investors, 3) assume any liability for faulty work , 4) worry about Lien Releases and stuff like that, 5) Verify that all subs have Liability Insurance/Bonds/Workers Comp, 6) be involved with materials...picking up, storage, warranties, liabilities, etc....

Your time is better spent running your investment business - find a new property to flip, keep your books in order, etc. You'll make more money that way.... :-)

Scott Chilton · Answer

I have used both setups across different projects, and what I found is that the better choice usually comes down to how much time you can actually give to the job.

A GC costs more, but a good one keeps the work moving, solves problems before you even hear about them and saves you from juggling people all day. If you have a busy schedule or the project has a lot of pieces, paying for that smoother ride can protect your profit more than it hurts it. You are really paying for fewer delays and fewer headaches.

Running the project yourself can work really well too, but only if you have the time and patience to stay on top of every detail. It is not just scheduling. You need to check in often, make decisions quickly and deal with surprises. The benefit is that once you build a small group of subs you trust, the work gets cheaper and you gain a lot more control.

If you are deciding which way to go, think about how much extra room your deal has and how much of your own energy you want to spend. Pick the option that lets you finish the job without slowing yourself down or adding stress you do not need. Either path can work as long as it fits your current season.

Peter Mckernan · Answer

I have done both.... It really is up to you, but what are you doing for your day job? Flipping and doing remodels, then do it all yourself and sub out. If you are working full time, I would give the full project to a GC. There are so many things that need to be done, onsite trips, QC stuff and more that you will miss if you are not doing this by driving over and checking out what is going on.

The other day I was subbing out a project (cost way more than expected even subcontracting it out), and the guy doing the bathroom window did not level it. I was not there luckily the electrician called me about it, if not they would have drywalled it in like that and kept going. Things like this can set you back a ton of money and time.. A GC would catch this stuff, or if not pay for it if they missed it.

Bo Smith · Answer

This is the question every flipper has to answer, and honestly, the answer changes depending on your situation. Early on, when you're learning, self-managing subs teaches you the business -- you see where delays happen, which trades are reliable, how to negotiate. But that education comes at the cost of your time, and your time becomes worth money the more deals you're doing.

What I've found works best is a hybrid: find ONE solid GC and build a real relationship. Pay them fairly, give them consistent work, and they'll do right by you. Yes, that 10-15% comes off the bottom line -- but if you're doing 2-3 flips a year, the time you get back is worth more than that margin. You can spend those hours finding your next deal instead of chasing down the drywall sub.

The catch is actually finding that reliable GC in the first place, like you said. Most people find them through another investor's recommendation or by watching how a GC runs jobs for others before hiring them. Don't just take the lowest bid -- talk to their last three clients and see if they'd use them again.

How many flips per year are you targeting? That really determines whether the GC fee pencils out for your operation.

Hiring a GC vs. Managing Subs, what’s Better?

Most Popular Reply