One Builder for the Whole Job, or Hire the Trades Yourself? How to Decide

There are two ways to get a renovation done. One way is to hire a general contractor, one builder who runs the whole job for you. The other way is to hire the trade crews yourself. That means you bring on your own electrician, your own plumber, your own framer, your own tile-setter, and you run them as the owner.

Most homeowners go with a general contractor because it sounds easier. Sometimes that is the right call. Sometimes it costs you 20 to 30 percent more than it should. Here is how to think it through.

When to Hire a General Contractor

Hire one builder to run the whole job when any of these are true.

The job has a lot of trades that have to be coordinated. A kitchen remodel touches electrical, plumbing, drywall, cabinets, countertops, flooring, and finish carpentry. That is a coordination job. A general contractor earns their fee by keeping the schedule moving and lining up each crew in the right order.

You cannot be around during the day. The trades usually work 7am to 3pm. If you cannot be there to make decisions, sign for deliveries, and handle problems while the work is happening, then a builder running the job for you is worth real money.

The job needs permits and inspections. A general contractor pulls the permits, schedules the inspectors, and reads the code so you do not have to.

You want one person to answer for everything. That is one phone call to make when something goes wrong. When you hire the trades yourself, you are the one refereeing between them.

A good general contractor charges 15 percent to 25 percent of the total job cost. That fee, often called the markup, pays for the time spent managing the job, the scheduling, the warranty, and the insurance.

When to Hire the Trades Yourself

Hire the trades yourself when any of these are true.

The job is just one trade. Re-roofing the house? Hire a roofer. Repainting the whole place? Hire a painter. Adding one circuit? Hire a licensed electrician. On a single-trade job, a general contractor adds nothing but the markup.

The job does not need permits. Cosmetic work like flooring, painting, basic carpentry, and many small repairs do not need a permit in most places.

You have construction experience or you are handy and organized. If you can read a bid, keep a calendar, and make a decision without panicking, you can run two or three trade crews on a small job.

The budget is tight and you would rather keep the money. Saving 20 percent on a $30,000 job is $6,000. That is real money in your pocket.

The Middle-Ground Approach

For small and medium jobs, a lot of smart homeowners do a mix. They hire most of the trades themselves, but they bring on one experienced trade person, usually the electrician or the plumber, as a kind of lead hand. That person can spot problems in the other crews' work. This gets you most of the savings without going in completely blind.

The Honest Truth About the Markup

Most homeowners think a general contractor's markup is all profit. It is not.

A real builder pays for the time they spend managing your job. They cover their office costs. They carry insurance, and their general liability covers the trade crews' mistakes. They stand behind the whole job with a warranty. They front the money to pay the trades before you pay them. And yes, they take a profit, usually 5 percent to 10 percent.

A 20 percent markup on a $50,000 job is $10,000. That sounds like a lot. But running a six-week renovation across five trades is real work. The real question is whether you are paying for someone who actually manages the job, or just paying for a name on the contract.

The Bottom Line

For jobs with a lot of trades, permits, and a tight schedule, a general contractor usually earns the markup. For one-trade work or small jobs, hiring the trades yourself saves real money.

Be honest with yourself about three things. How much time do you really have? How much construction experience do you really have? And how much risk are you comfortable carrying?

That is the same honest read a working superintendent would give you across the kitchen table. Our whole reason for being is to put a superintendent in your corner, so you walk into this decision knowing exactly what you are signing up for.

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