Site Supervisor - Site Manager

The Cost of Using a Site Manager (Supervisor) to Build Your Own Home

From: Steven

"I bought your book but have a question for you.

I want to use a site manager for my first project your book makes a little mention of how this compares to savings or the added expense over the 25% savings of my being my own GC.

What would be the difference in cost, what would be the site supervisor’s fee?

I am in Chattanooga TN would there be a regional difference in what a site supervisor would get?

Thanks,

Steven"

Hi Steven,

In Chapter 1, You’ll find:

Alternatives to Being Your Own House Contractor

Let's suppose that for one reason or another you (or your lender) decide you can't go
forward with your plan to act as your own contractor.

Here are four other ways you can build, using a building consultant or professional general contractor (builder) in a
position of increasing responsibility and at correspondingly greater cost to you. (The first three options should still save you money overall.)

1. A building consultant such as BuildMax (2 - 6% of total cost)

The following contracts available on my “Getting Started” page, under # 10.

2. Site supervisor’s (Manager) contract. (Cost = 6 - 10% of total cost)

3. Cost plus a percentage or a fixed fee contract. (Cost = 10 - 15% of total cost)

4. Contract bid for the entire job. (Cost = 25 - 35% of total cost)

Because each option increases the third party responsibility, the cost of using that
third party also increases. The cost of the land, the materials to build the house, and
other fixed expenses should remain the same.

The least expensive way to go is a building consultant. This is the way by which
you can still be considered the general contractor, be accepted by your lender, and
possibly feel more comfortable overall.

Under a Site Supervisor arrangement, you hire a licensed general contractor whose only responsibility is to act as your manager with the subs. This contractor, in return for about one-third of the normal fee or profit and overhead, will assist in
finding the subs (although you can still find your own), schedule the subs, check the
quality of their work, approve the quality of materials, and order materials, when needed, in your name.

You will still be responsible for selecting and buying the land;
figuring out all cost estimates; securing suppliers, permits, loans; paying all bills, including those from subs; and ensuring inspections for quality and lender approval.

You will be responsible for the final job and its overall acceptance.

As I STATE above in # 3, you can expect to pay 6% to 10% of the total cost of construction.

That means, if you expect to save 25% of your home's final value as an Owner/builder (being on your own with NO Site Supervisor), you can expect to save 6% to 10% less than 25% by using a Site Supervisor. Your savings going this route should be 15% to 19% of final value.

That's still "not too shabby".

The total cost of construction may differ by regions, but the percentage of total cost charged by a Site Supervisor is pretty standard throughout the country.

Good luck,