Those new to building and first time owner builders can benefit greatly from a site supervisor. Many owner builders rely on site supervisors for their knowledge of local building codes, help with contractors, work arounds for problems and selection of appropriate materials for your job.

Who can be a site supervisor? Do they have to be a General Contractor?

At a minimum, typical bank requirements for site supervisors call for residential construction project manager experience with a least two years of practical on the job experience. If your site supervisor falls into this category he/she will be asked for a resume to document their knowledge. The resume should be written as if your site supervisor is applying for the job of project manager. They should mention of the number of houses built and demonstrate the understanding of all aspects of residential building from “ground up”, highlighting local code knowledge, is a good start to getting them accepted by your bank.

The ideal site supervisor is a general contractor with years of building experience and a state contractors licenses. General contractors have the least resistance in qualifying as site supervisors as long as they have been building for at least two years. Mentioning the number of homes built will be helpful when completing the site supervisor information sheets. Many retired builders are increasingly becoming site supervisors and will pass bank scrutiny as well. Just document their experience and they should be fine.

It’s important to note some states require contractor licenses to build a home. Check with your local building authority for more information.

Where do I find a Site Supervisor?

This question is asked often, and the answer is easier than one may think. In some cases soon to be owner builders have friends or family who are in the construction trade. These site supervisors are going to be the cheapest, they can even charge you $0 for their services. But sometimes you get what you pay for when it comes to friends and family, if you are considering them for your site supervisor, you should also know if they will be there when you need them, always use your best judgment.

If you want a detailed agreement which outlines roles and responsibilities of your site supervisor, be prepared to shell out hard cash for their services or consider hiring an owner builder consulting company to fill the role of site supervisor. If you don’t know someone off hand that would qualify as a site supervisor, you will have many chances to interview potential candidates during the bidding process.

Many subcontractors who will be bidding on you project are licensed contractors who have chosen to specialize one area of building for one reason or another. You will notice a handful of subcontractors will rise above the rest in terms of helpfulness and input into your project. Approach these subcontractors about being your site supervisor. You will be surprised with the results.

Most often you will find the more money you spend with a subcontractor the more receptive they will be about being your site supervisor.

Drafting the Site Supervisor Agreement

The second part of the banks site supervisor requirement is the “Site Supervisor Agreement”. The first question most potential site supervisors will ask is if they can be held liable for any damages. The answer lies on your site supervisor agreement. The site supervisor agreement is simply a contract between you and the site supervisor. The site supervisor is not asked to commit themselves to the bank and are not legally responsible to the bank, only to you. This puts the onus on you to ensure you have spelled out all the roles and responsibilities you expect from your site supervisor. This being said, site supervisor agreements come in all shapes, sizes and costs as every owner builder has different needs thus the contracts will differ.

Logically the more you demand of your site supervisor the more money they will demand of you. Site supervisors will have to charge you a flat fee for their services (banks will not accept per hour agreements) and prices will vary depending on the detail of your agreement.

Site supervisor agreements don’t have to be lengthy, but be specific in areas you want addressed. But, if you are looking for detail and ask for lots of responsibilities from your site supervisor, owner builder consultants may be your best route.

Today thousands of new home owners are bypassing traditional general contractor agreements and choosing to be owner builders. With the advent of new building technologies and the acceptance of owner builder loans by lending institutions, owner builder projects are sprouting up all over the United States.  But what’s the difference between an owner builder project versus a traditional general contractor project?

Let’s first talk about general contractors

Under the traditional general contractor relationship, the general contractor is responsible for everything required to build a house to the specifications outlined in a contract. This includes obtaining permits, managing all phases of construction, paying subcontractors, purchasing appropriate insurances and lets not forget working in change orders. For this the home buyer agrees to give him/her a sum of money. Once completed the general contractor hands the keys to the new homeowner. They didn’t get their hands dirty and hopefully everything went off without a hitch, everyone walks away happy.

What did they exchange for not getting their hands dirty in this traditional relationship? Equity in their new home. It’s common knowledge that general contractors typically make 15% to 20% profit on projects. While this sounds expensive general contractors are worth every penny for those not up to the challenge of being an owner builder. One thing is for certain, not everyone is cut out to be an owner builder, even people who are experienced in the building trades.

Cue the owner builder

In essence the owner builder is really a general contractor. They are responsible for everything the general contractor is traditionally responsible for; permits, planning, accepting bids, scheduling, managing subcontractors, paying vendors and labor…. you get the picture, everything. The success of the project rest squarely on their shoulders. Successful owner builders are first and foremost good managers and know how to offset these responsibilities to the appropriate team members.

Owner builders must determine their role early in the planning process as to where they are going to contribute to the project. They must be realistic about their abilities and with their available time. Some owner builders find out the hard way that they should have hired a general contractor to build their home. Lack of time, organization, planning, experience in managing people and money can send an owner builder project down the tubes fast. It’s important to understand that just because someone chooses to be owner builder doesn’t mean general contactors are out of the picture, instead they can be utilized as invaluable team members.

How much involvement?

Owner builder projects can be as organic as complete ground up construction with no outside help, hybrid owner builder / general contractor relationships, or complete subcontracting of the project with the home owner being the main overseer. In the end, the more involved the owner builder is the more money they will save, typically. Remember poor workmanship and planning can be costly. Site supervisors can help.

Most banks will require a Site Supervisor, and with good reason. Banks want to know the owner builder has someone available to help in the planning and organization of the project. They also want to make sure the owner builder has someone to pull them out of a jam when the going gets tough. Having an experienced general contractor as your Site Supervisor be your best asset.

Know the rules…

The tasks of an owner builder are not to be taken lightly. By signing a building permit application an owner builder assumes full responsibility for all phases of the project and its integrity. Before beginning the journey of becoming an owner builder check local and state regulations. Special restrictions may apply to owner builders. Follow this link to find out more about your state’s requirments Contractor’s License Reference Site.