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Talk me out of being my own general contractor on a house build. Ready go!
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<blockquote data-quote="Yellowyj" data-source="post: 643531" data-attributes="member: 3504"><p>I am the civil manager for a commercial GC in Birmingham, and currently we are seeing the cost of subs rising due to the amount of work available for them. I also do some CM type work for developers in the residential market and there are more houses being built in the area now then the past several years which probably doesn't help you cost wise either. What I have been seeing across the board is an increase in available projects/work for subs which has lead them to be a little more selective and given them and opportunity to name their price for work. The multi-family market has blown up the past couple years in the Birmingham area as well which could also be contributing factor to your overall pricing as well. Currently lumber is high, even though you can't hardly get ride of standing timber and many yards have timber sitting (and don't even talk about getting rid of wood chips). On many of jobs we have seen a recent increase in the cost from electrical subs. </p><p></p><p>In general, over the past 8-9 years the subs that were able to hang on and stay in business have been a little more hesitant to grow and there haven't been as many new subs start up so as the work demand has increased the sub markets have been slower to grow and has in a sense created somewhat of a shortage. To compound this there is an overall shortage of skilled trade workers across the board. There are other factors that affect market and sub pricing as well, but these are some of the contributing factors we have noticed over the past several years. We specialize in commercial retail projects and work all over the country, but try to stay focused in the southeast market. </p><p></p><p>Some of the larger residential subcontractors also work in the multi-family market. My gut feeling is the multi-family market, at least in Birmingham, will die off to large extent over the next year or so, so that should help bring the pricing back down some. Many of the multi-family projects we have been looking at on the front end with developers have seemed to died or are on hold for now or being restructured. Many of the multi-family developments that have recently been completed are still vacant, so those deals are not as lucrative for developers right now. So might would be worth holding out for a slow down to get a little better pricing. I would at least talk to your builders to see what they are seeing/hearing with their subs and materials.</p><p></p><p>I would agree that it is very time consuming and the best way would be to have someone representing you or the GC at the site when work is ongoing. Basically you will need to baby sit the subs and suppliers and keep everyone on their toes. On our projects we typically have a minimum of a full time onsite superintendent and a project manager at the office that also visits the site frequently. Doesn't matter if it is a few hundred thousand dollar project or a multi million dollar project. As the project size gets larger or the schedule gets shorter then the number of superintendents and project managers/assistants increase. Currently the owner of our company is building a new house and we have a superintendent onsite and a project manager here at the office working on his house, but part of the big struggle with his is getting his ideas/design out of his mind and making it become a reality so that adds a whole other level of challenges. My dad built his on house 15 years ago as his on GC and pretty well dropped his other work while he built his house (at the time he owned his on construction company as a side job to being a full time fireman where he worked 24 hours and was off for 48 hours).</p></blockquote><p></p>
[QUOTE="Yellowyj, post: 643531, member: 3504"] I am the civil manager for a commercial GC in Birmingham, and currently we are seeing the cost of subs rising due to the amount of work available for them. I also do some CM type work for developers in the residential market and there are more houses being built in the area now then the past several years which probably doesn't help you cost wise either. What I have been seeing across the board is an increase in available projects/work for subs which has lead them to be a little more selective and given them and opportunity to name their price for work. The multi-family market has blown up the past couple years in the Birmingham area as well which could also be contributing factor to your overall pricing as well. Currently lumber is high, even though you can't hardly get ride of standing timber and many yards have timber sitting (and don't even talk about getting rid of wood chips). On many of jobs we have seen a recent increase in the cost from electrical subs. In general, over the past 8-9 years the subs that were able to hang on and stay in business have been a little more hesitant to grow and there haven't been as many new subs start up so as the work demand has increased the sub markets have been slower to grow and has in a sense created somewhat of a shortage. To compound this there is an overall shortage of skilled trade workers across the board. There are other factors that affect market and sub pricing as well, but these are some of the contributing factors we have noticed over the past several years. We specialize in commercial retail projects and work all over the country, but try to stay focused in the southeast market. Some of the larger residential subcontractors also work in the multi-family market. My gut feeling is the multi-family market, at least in Birmingham, will die off to large extent over the next year or so, so that should help bring the pricing back down some. Many of the multi-family projects we have been looking at on the front end with developers have seemed to died or are on hold for now or being restructured. Many of the multi-family developments that have recently been completed are still vacant, so those deals are not as lucrative for developers right now. So might would be worth holding out for a slow down to get a little better pricing. I would at least talk to your builders to see what they are seeing/hearing with their subs and materials. I would agree that it is very time consuming and the best way would be to have someone representing you or the GC at the site when work is ongoing. Basically you will need to baby sit the subs and suppliers and keep everyone on their toes. On our projects we typically have a minimum of a full time onsite superintendent and a project manager at the office that also visits the site frequently. Doesn't matter if it is a few hundred thousand dollar project or a multi million dollar project. As the project size gets larger or the schedule gets shorter then the number of superintendents and project managers/assistants increase. Currently the owner of our company is building a new house and we have a superintendent onsite and a project manager here at the office working on his house, but part of the big struggle with his is getting his ideas/design out of his mind and making it become a reality so that adds a whole other level of challenges. My dad built his on house 15 years ago as his on GC and pretty well dropped his other work while he built his house (at the time he owned his on construction company as a side job to being a full time fireman where he worked 24 hours and was off for 48 hours). [/QUOTE]
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