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Is a general contractor necessary for that single-trade construction project?

I will start with a slightly provocative question.

The construction project you are about to undertake.

Is it really necessary to go through a
general contractor?

*Note—
This article is not a simple argument
against general contractors.
If you judge it after reading only part of it,
the intent may be misunderstood.

This article is written for
construction laypeople,
general contractors, and
architectural design firms.


What is the work of a general contractor?

Architects design.
Craftsmen perform construction.
Construction supervisors verify that the work is
being carried out according to the design.

Site managers manage the schedule and safety.

So, what is a general contractor?

I define it as follows.

A general contractor is a mechanism for centralizing responsibility.

A general contractor is a mechanism for centralizing responsibility

In construction work, multiple trades operate simultaneously.

* Schedule coordination
* Cost management
* Quality control
* Safety management
* Neighborhood relations
* Defect response

General contractors take on all of these collectively.

In complex construction projects like a single house,
the value of this role is immense.

Then, what about relatively simple construction projects?

For example—

* Demolition work
* Exterior wall painting
* Roof replacement

Many of these types of construction projects are completed by a single company.

In this case, having a general contractor act as an intermediary
can increase costs by about 20-30%.

The reason is simple.

Apart from construction costs,

* Management fees
* On-site expenses
* Warranty risks
* Company profit

are added to the total.

---

So, is direct ordering a "good deal"?

This is the main topic of this article.
*In the second part, we will explain this from a different perspective.

I have explained it to clients like this until now:

"You are welcome to order directly.
However, there are things you must take on yourself."

Certainly, there is a possibility that it will be cheaper.

But in exchange,
the responsibilities borne by the client themselves will also increase.

---

《 What the client bears with "direct ordering" 》

With direct ordering,
the client themselves will have to take on the following roles:

* Schedule coordination
* Communication between contractors
* Negotiation during trouble
* Clarification of scope of responsibility
* Confirmation of warranty details
* Handling neighbors
* Decisions on additional costs

What is particularly scary is the "dispersion of responsibility."

For example, suppose a defect occurs after painting work.

The scaffolding contractor will say,

"We only set up the scaffolding."

The painting contractor says:

"Isn't it a problem with the substrate?"

The substrate contractor says:

"Wasn't the construction condition poor?"

Well—,
who is going to sort that out?

Who is going to sort that out?

That would be,
you, the client.

This is the same for things like roof leaks.

Is it the roof?
Is it the sheet metal?
Is it the waterproofing?
Is it the exterior wall?

The more ambiguous the boundaries of responsibility become,
the more a coordinator is needed.

---

The true value of a general contractor

I do not consider the profit of a general contractor
to be mere 'middleman skimming'.

The profit of a general contractor includes:

'The cost of standing on the front lines when problems occur'

is included.

When trouble occurs,
they coordinate between contractors,
sort out responsibility,
and stand before the client.

That is the compensation for that role.

Of course,
for simple construction,
there are cases where direct ordering is rational.

However, that is,

It is limited to "cases where you can manage the risks yourself."
Conversely, if you can reasonably systematize that risk management, it should be fine—right?

In other words,
if that risk management can be reasonably systematized,
it is fine—isn't it?

---

The ratio based on my experience

Up until now, I have explained the option of
direct ordering to my clients
without hiding anything.

And I have done so not just verbally,
but based on systematized original materials,
providing explanations.

Based on that, my realization is,

* About 4/5 of people choose to go through a general contractor
* About 1/5 of people choose to order directly

This is the result that has settled in.

The reason is simple.

"Buying time and peace of mind with money"

Those who value that worth
choose a general contractor.

However, from my perspective, it is a waste.

And I always think this.

And I always think this

Even though there is a way to order construction that is cheaper
and can also guarantee quality.
Of course, this is limited to single-trade construction work.

Even though I have presented the materials for that right in front of them,
why do they not try to use them?

It must be due to a lack of understanding and personality—.
But, if only they would take that one step forward.

---

Conclusion

Whether a general contractor is necessary
is not determined solely by the scale of the construction.

What is important is

"who manages the risks"
.

In other words, this is

also a question of "who bears the responsibility"
.

---

Next Episode Preview

Starting next time, I will explain specifically
by dividing it into the following three directions.

1. For construction laypeople

 ――The mindset and methods to avoid failure when ordering directly
   

2. For designers

 ――The possibility of establishing this as a side business or design supervision service
   

3. For general contractors

 ――A new strategy to escape price competition

Actually, I have provided this method for free to past new construction clients until now.

However, in reality, it is quite practical
and also content that requires experience.

Therefore, from now on,
I am thinking of organizing it
in a more systematic form.

---

To construction laypeople

For example, when you are thinking about repainting your exterior walls,
this content might have seemed a bit alarmist this time.

However, conversely speaking,
if you can understand this anxiety and take countermeasures,
for single-trade construction,
there is a possibility of reducing costs by 20-30%.

For example,
there are cases where a 1 million yen construction project can become 700,000 to 800,000 yen.

The keywords are
a little courage and correct knowledge
.

---

To general contractors

This article is
not an article hostile to general contractors.

Quite the opposite.

Until now, I have
continued to see situations where general contractors are chosen
even after explaining the option of direct ordering to customers.

That is precisely why,

I feel the need to re-articulate
what the value of a general contractor is.

Rather than price competition,

* Responsibility
* Coordination skills
* Problem-solving skills

How to turn these into value.

I believe that is where the future potential of general contractors lies, what do you think?

The keyword is 《 a change in perspective 》.

Are you already prepared?

---

To design offices

I am a general contractor business owner and at the same time,
I am also the founder of a first-class architect office.

The content this time is

* Should a general contractor handle it?
* Should an architectural firm handle it?

Honestly, I am still in the stage of searching for the answer.

However, one thing I can say is,

that there will definitely be demand for "responsibility organization and procurement support" in the future.

The keyword is "control".

---

Finally,

Is a general contractor necessary for single-trade construction?

That question can be replaced with,

the question of "who takes responsibility?"

As a construction amateur, which would you choose?

As a construction professional, how will you turn this into new value?

And next time—

I will delve into practical solutions for the problem raised this time.

Related videos to the article published this time

I previously published related videos to the article on YouTube, but I have changed those sections to private.
(Those who do not know the URL cannot watch them)

Public videos can be watched
so if you are interested, please take a look. —

here
—is the link.

Regarding this article, "Aho-Roshi" says this
in another note
.

=========================
Thank you for reading this far.
If you feel you "want to look forward to more," it would be encouraging if you could follow or press the ♡ button.

※ I also distribute the following as a hobby
▶ I recommend RC housing on
this YouTube channel
▶ For those aiming to become a Construction Management Engineer
this YouTube this note
▶ For those aiming to become a Civil Engineering Management Engineer
this YouTube this note
▶ I post SF shorts and essays on
this note
▶ I introduce my book (paper media) on
this publisher's site
▶ E-books are
13 Behind-the-Scenes Facts General Contractors Won't Tell You
21 Episodes Leading to RC Housing
RC Housing at the Same Price as Wood Construction
13 Essential Considerations for Choosing a Home


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