Do it yourself. It’s becoming the American way in these economic times, and home remodeling is no exception.
For cost savings and perhaps for the fun of it, some homeowners are embracing a do-it-yourself remodeling approach – not just painting walls or laying tile, but managing subcontractors and material suppliers and acting as their own general contractors.
The approach can work well for construction-savvy homeowners, for subcontractors who prefer to work directly with clients and for consultants who teach homeowners how to run projects.
“That kind of work is for the homeowner that has the expertise, time and willingness to do what’s necessary,” said Mike Richart, co-owner of Vancouver-based Richart Builders and Remodelers. “Lots of people are more than capable of that.”
The strategy is also a boon to subcontractors who have been left waiting for paychecks from general contractors, DIY consultants said.
“The best thing the subcontractors love is that homeowners pay their bills,” said Meg Jaquay, owner of the Vancouver-Portland UBuildIt Corp. franchise. “There are too many ‘robbing Peter to pay Paul’ scenarios out there.”
But others say the DIY approach takes work away from general contractors and makes homeowners liable for outcomes they’re not always prepared for.
With a little help
With UBuildIt, Jaquay helps homeowners plan and manage residential building projects.
She became a building consultant after working with Bothell, Wash.-based UBuildIt on her own home in 2002.
“I recognized that I knew enough to get myself into trouble,” she said. “I really needed the experience of someone who had been doing this a lot longer than I had to guide me without wasting my money and my time.”
She now owns three local UBuildIt offices and connects homeowner clients to a network of about 100 subcontractors.
Jaquay recommends the DIY approach to homeowners who want direct control over their projects and to save on contractors’ fees. She said consultants help lower the risk factors in that process, and that she aims to charge about 30 percent of contractors’ fees.
UBuildIt works for three or four months “building the house on paper” with each client, Jaquay said, developing 50-page project specifications that clarify needs with subcontractors, minimize change orders and help determine a home’s appraisal. Consultants make up to 23 site visits during construction to monitor quality and scheduling.
UBuildIt is a licensed general contractor, but Jaquay said the business doesn’t encroach on other contractors.
“We’re marketing to different types of people,” Jaquay said. “There are people who come to us who I know would not be good owner-builders because they don’t have time or they just want to hand (off) the responsibility.”
A new approach
Curtis Miller got into consulting after his Battle Ground-based business, PCR Contracting, was dealt several financial blows and went under in January 2008.
“Work slowed down when we were behind the eight-ball and cash flow disappeared,” said Miller, who serves on the Building Industry Association of Clark County’s builder-developer council.
He established Darby Rural Corp. in January 2007 to assist clients with permitting services, and in 2008 he added consulting and education to the business and made it his full-time focus.
Experience showed Miller that contracting “can’t end on a win-win situation for the customer and contractor because there are too many unknowns” to throw a project off-budget, he said.
“The customer is trying to get as much as they can for as little as possible, and the contractor is trying to get as much money for as little work as possible,” Miller said.
Without a contractor, all parties are paid directly by the homeowner, who is also liable for the project’s end result.
“I don’t have anybody else’s bills to worry about,” Miller said. “Nobody else is on the hook,” “That is a wonderful feeling after (processing) $250,000 a month.”
Miller trains homeowners in group classes and individual meetings and connects them to his network of 150 recommended subcontractors, suppliers and industry specialists.
“We’ve got people struggling to find work talking with people who are looking to save money so they can connect and have a good outcome,” Miller said. “I qualify my clients and teach them how to be good customers.”
In exchange for job leads, companies in the network charge Miller’s trained clients lower fees, he said.
Hidden challenges
But DIY isn’t all roses. With complex tasks – such as home remodels – DIY can involve more risk.
“Certainly when somebody hires a consultant instead of a registered contractor, they’re sort of working without a net,” said Steve Madsen, government affairs director of the Building Industry Association of Clark County. “Because codes are so complex and regulations are so complicated, it becomes clear right off the bat to a lot of people that they’re biting off more than they can chew and it’s better to let the licensed pilots fly the airplane, so to speak.”
Sean Kramer used to work for Miller at PCR Contracting and is now owner of Vancouver-based P&F Builders. His work with Miller as consultant led to at least 15 jobs in the last year. The set-up works well with clients who are familiar with construction, but some still need more guidance, Kramer said.
“For the customer that wants to be more actively involved in the process, it’s a pretty good deal for them, though a lot of them are still overwhelmed,” he said. “You can watch all the building channels on TV, but you’re never going to see all the steps.”
Even with training, DIY homeowners can have trouble juggling project timelines.
“They think a 60-day project should be done in 35 days or don’t understand” project scheduling issues, Richart said. “You can probably make more (money) staying at work and paying someone to do the work than you will (save) doing the work and staying at home.”
And then there are matters of liability to consider.
“There’s a lot of legal knowledge that homeowners should have when they’re dealing in the construction industry … whether it’s lien rights, paying bills or accounting practices,” Richart said.
But with all the risks, Madsen said there are still opportunities for builders working with consultants’ homeowner clients.
“Right now I see the consultant as more of a niche than a trend,” Madsen said. “Historically there have been a lot of general contractors that didn’t want the customer involved in the process. Now, as hungry as contractors are, if (the homeowner) wanted to do some of the work himself, I can’t see a contractor turning that job down.”
When working with builders, ‘DIY’ contractors should:
• Get a permit
• Read the directions
• Provide adequate electrical power to all subcontractors
• Know the project will make a mess
• Call before they dig
• Expect the project to take longer than they want it to
• Not hire the cheap guy, cut corners or buy cheap materials
• Pay vendors on time
• Use written contracts and change orders to describe project changes and their impacts on the scope of work, schedule and cost.
• Communicate regularly with all parties involved
• Be kind to building inspectors
• Not be afraid to ask questions
Source: Darby Rural Inc.
Charity Thompson can be reached at cthompson@vbjusa.com
