Defining a Good Owner Builder
There are several homeowners who have built their own homes and have become their own contractor of the project. They had the benefit of earning more equity, cutting down costs, and building a home they want. Building a home is not as complicated as you think. In fact, one out of ten homes in Australia were Owner Built! You can do it too. You’ll have peace of mind knowing that you will be in control. The owner-builder is an individual who functions as the general contractor of the entire home project. The truth is, anyone has the right to construct their own home. Being the general contractor, the owner-builder manages the entire process. This includes hiring the subcontractors, paying the bills, and getting the materials needed for the site. Additionally, the owner-builder takes ownership of the legal obligations and risks. They accept full responsibility for all phases of the project and its integrity. Read more about the owner-builder risks.
Qualities of a good owner-builder/contractor
- To become a successful owner builder, you should have the following qualities:
- Excellent organizational skills
- Keen to detail
- Unwavering Persistence
- Discipline and strong work ethic
You will need all these skills to allow you to organize people, create invoices, negotiate on material costs, follow up on unfinished work, stay focused, and see that the project is on its way to completion.
The benefit of contracting your own home
- Increased equity. Since you as the owner-builder assumed the general contractor function, you have removed them from the equation where you have turned their supposed fee to additional equity.
- Control over the project. When you control the project, this simply means that you are the boss, from employing subcontractors, purchasing of materials, and supervising. You can control expenses so that you can save at any angle you can.
Contracting an owner-built home
Once you have decided to contract your own home, you need to understand the entire contracting process. You’ll require to have a strong understanding of the big picture. The factors or steps needed for contracting your home are presented below in fundamentally the same sequence you will encounter when starting the home project.
Basic steps needed for contracting a home:
1. Complete a financial plan 2. Locate and buy the lot 3. Put together your plans and specifications 4. Estimate of costs 5. Put together a feasible construction schedule 6. Acquire the financing you need 7. Secure permits and sign contracts 8. Be involved in the construction process 9. Be involved in the inspection process 10. Finally, move in! The list above looks simple and straightforward. The challenge comes from the details of each step. Below is an overview of each step to get started
Brief Overview of the Contracting Process (Steps)
Your Construction Schedule Develop a construction schedule to get started. This can be a detailed plan, showing a demonstrative series of construction events. Financing – getting a firm commitment on your financing If you don’t have a strong dedication to your construction as well as long-term funding, right now is the perfect time to do it. It should be done right after the lot purchase and after the plans and specifications accomplished. Get your papers ready – from your construction schedule, budgeting plan which includes your cost estimate, and your plans and specifications. Find out how much you are qualified for, the interest rate, your loan options, what you need to qualify, and etc. Talk to your lender to have everything ironed out. Get a firm commitment with your bank asap. Financing plays a great role in your budget and in the home building process as a whole. Contracts and Permits – executing permits and contracts Right after you have your lot, plans, as well as a strong commitment in financing, it’s time constructs. This is essentially the culmination of the contracting process, but the beginning of management and supervision tasks. The very first move is to carry out agreements with the Subcontractors and acquire the necessary building permits. Construction Now it’s time for you to build the home. As the owner-builder, you are the boss. You will essentially be the conductor, the decision-making body, the manager, the procurement, and the supervisor of the building process from start to finish. Being an owner-builder of your home entails a lot of process being your own contractor. The steps laid out in this post will help you go through the step by step process. For more detailed information, you can consult with a professional contractor builder, however, consultation may come with a fee. Research is important in every process and in every step, so make sure to ask and raise your question. Understanding the whole process is getting the right knowledge. And when you have the right knowledge, everything will fall in its place.