Pros & Cons of Doing Construction In House
Written by Kevin Padillo, Business Development, Pircon Group
The New Year has begun and there are new actions that you want to take.
One of them is construction or renovations on your home and even business.
I’m going to share with you the Pros and Cons of doing construction in-house and help you make a decision on your own.
Just a heads up, I may be biased. I work with the Pircon Group and we are Calgary General Contractors. My goal in this article is to help you make an informed decision that benefits you. If you have any questions you can send me an email: at?[email protected]?and I’ll help you out as best as I can.
DOING CONSTRUCTION IN - HOUSE
PROS
- Save Money: Most general contractors charge a profit, fee, or a markup for their management services. Depending on the experience and salary that you or your in-house project managers will be taking you could save money.
- Design Control: By having you or your in-house project managers take care of the project. You will be able to control the key steps of the project such as design and build and make changes that align with your design needs.
- Control of Speed: Many general contractors have other projects that they take care of. This change of attention can cost your project time and delays. If you have the time, experience, and knowledge, you can find ways to streamline construction.
CONS
- Lack of Experience can cost you: If you do not have the experience, knowledge of construction or project management strengths - this can cost you money on changes and delays. Also, a lack of experience can cause safety issues.
- Focus away from business: Unless you have a project management team that has the time, doing the construction in-house will take you away from key income-producing tasks of your business. You are not in the construction business, you are in the money-making business.
- Project management salaries cost money: The average salary of a Project Manager in Calgary can start at $81,422 per year (Source: Indeed). Many franchises that we work with may decide to hire a project manager. This manager has to be paid a salary and that can be a recurring cost in your overhead. You can hire project management consultants however they must be experienced in construction to benefit you. Their fees are steep as well.
HIRING A GENERAL CONTRACTOR TO HELP YOU
PROS
- Experience: General contractors are strong in managing construction projects. They have experience with managing timelines, ordering materials, leading sub trades and getting stuff done.
- Saving Money: I know it may sound counter-intuitive but hiring a Calgary General Contractor for your project can result in you saving dollars. You may ask why? An experienced construction manager has many projects under their belt. They know the roadblocks and the best practices for getting things done. By working on your project - they can bring your project ahead of schedule and save on materials
- Safety: A Calgary general contractor that manages your project must put safety in mind. Good contractors that have real businesses have WCB, are bonded and are insured. That means they are financially protecting you and their business from damages. They make sure their employees and contractors on site are wearing the appropriate safety gear and following key safety procedures on making sure the project is completed without issues.
- Design Control: Some firms that do construction may also have a Design firm as well. Companies such as the Pircon Group have in-house designers, architects, and engineers that will design your project. A combination of Design and Construction in one place can make sure that your goals are aligned with the work being done. Combining both can also result in getting you a deal.
- Quality of Work: Good General Contractors pride themselves on the work they accomplish. They want to do a good job, they have strong attention to detail and they truly want to help.
CONS
- Fees: There are many fees associated with hiring a General Contractor. Firms may charge differently however they don’t charge per hour but add a percentage. Some companies set their fees by charging 10-20% of the total job cost. This type of payment is called “Cost-Plus”. Note there are many other forms of contractor payment, cost plus is popular.? To find this number, add the cost of materials, labor and multiply by the contractor's rate. There may also be costs associated with change orders. Make sure you
- They have other projects going on: A good General Contractor has other projects on the go. They are high in demand which is also a good sign. A General Contractor may split time between your project and others which may result in delays.
- You might get ripped off: There are construction teams out there that have no ethics. Some may take your deposit and run away. Some companies may not finish the work that they committed to do. There are scumbags everywhere so make sure you do your research beforehand.
Here I have shared with you the Pros and Cons of doing construction in-house. The most important thing to do is to do your research and due diligence before engaging in a contract. Start building a relationship with a General Contractor to get to know their process. I have written an article on?how to find a contractor.?I trust that this article has benefited you along your journey with expanding your business and home. From saving money to losing money, being informed is a crucial step in finding success in 2023. Have a great year.
About us:
The Pircon Group provides General Contracting and Design services and we operate in North America-wide. We have built 2,000,000 square feet of commercial and residential buildings. From restaurants, offices, and multi-family construction. We have project managers and consultants that are ready to help. With our headquarters located in South Calgary, our experienced team can guide you through every step of the process from concept to completion.?For information on our services:?Visit PirconGroup.com
You can contact a representative directly to apply for an estimate
