Four Reasons to Choose the Owner-Builder Method

You bought the land of your dreams. Congratulations! Your architect designed the perfect house. Amazing! Plans and permits have been obtained. Check! Who will build it for you?

While most new homes are traditionally constructed by a builder and fall under a traditional building contract, an option should be considered: the owner-builder method.

By obtaining an owner-builder consent you could embark on one of the most challenging but equally rewarding ventures of your life.

This option might not be for everyone and could seem intimidating to most, but there are some perks. Before dismissing the idea, let’s examine the pros of being an owner-builder.

1.      Being in Charge

Traditionally, you hand over the construction site to the builder and have little control over the process. Being an owner-builder puts you in charge of literally everything. You make the decisions that suit your needs, wants, and budget. You choose the construction methodology. There is no doubt that this requires a lot of planning and the ability to be in charge, and the responsibilities may seem overwhelming; however, if you are articulate about how your home is being built, this is a good option to consider. Being an owner-builder suits a hands-on personality as there are many things you can do yourself without needing to hire a tradesperson. You are in control over the entire process, from A to Z.

2.      Flexibility

The owner-builder process allows for more flexibility than a traditional building contract. During the construction, things change. Remember that it has most likely been a while since you approved the architectural plans, and with time, preferences and individual needs can change. Perhaps you do not want the wall between your bedroom and retreat you were adamant about, and maybe you would like to add a skylight to your walk-in closet. The beauty is that as long as permits are updated, these changes are easier to incorporate by you being the boss. This process allows you to make changes while choosing the materials, fixtures, and finishes, without attracting major variation to the cost, as you are not locked into a contract with a builder.

3.      Timeline

Who hasn’t watched “Grand Designs” when projects take forever to finish? Sometimes, having the flexibility of taking breaks to allow for other things in life will keep you sane during the building process. Unexpected things can happen, so you can extend permits to allow for more time to align with your cashflow, or speed things up, whichever way you choose. Building in one hit or staging the process is all up to you.

4.      Cost Savings

Traditionally, a builder charges a "builder's margin" to cover overhead costs and include profit. This margin adds 15-25% to the build price. On a two-million-dollar build, that is a cost-saving of around $400,000. Yes, volume builders may have discounts with suppliers, but here is where your negotiation skills come to use. You can also prioritise what you are happy to spend more on and where you want to save. Do your homework and keep a budget. Construction material prices can go up quite rapidly, so allow for contingency. Any variations that may occur are directly approved by yourself, and if you have a network of handy friends, this is the time to pull out favours.

Getting Help

Does being an owner-builder mean that I am on my own? No, not necessarily. Many owner-builders have an idea of how much time, knowledge, and effort they are willing to commit to building the house. Hiring a project manager or a construction manager for the whole or parts of the process is a great option for those who prefer to offload a big part of the task to a professional but still want the flexibility of an owner-builder, but this comes with a cost.

Architects or building inspectors are an excellent option for those who want to be assured of the quality, and architects can offer contract administration services to assist during the build.

Being an owner-builder has plenty of benefits as long as you are prepared to do the work. Before you rush to grab the toolbox, a word of advice: do your homework and read about the process. Whether you engage a construction manager or do it yourself, you are still responsible for ensuring that the building meets all regulations and standards and that your permits are in order. Not unlike being a business owner, you are in charge of the health and safety of the workers, as well as the day-to-day operation.

Mel Gawi and Architeria Architects have assisted in many owner-builder projects, from project management to contract administration. We offer packages to suit your needs, and we are one phone call away from making your plans a reality.

Kate Gawi

Creative Director and Interior Designer

Architeria Architects