Mortgage rates are still historically low. If you would like to take advantage of such low rates while they are still available, then you may already be planning to build your own custom home.

Building a custom home demands a lot of decision-making. One of the most important choices you can make is to hire a general contractor to manage your entire construction project.

You may believe you can save money in the long run by cutting the general contractor out of the equation. They typically charge between 10 to 20% of your total contract cost. But excluding an important professional from such a complex project is highly inadvisable. Doing so will very likely wind up costing you more.

Here are the reasons why you should hire a general contractor to build your custom home!


General Contractors Keep Construction Projects Flowing Seamlessly

Managing a construction project can quickly become overwhelming. Scheduling material deliveries, coordinating all of the various subcontractors, and pulling necessary permits in compliance with local code must all be done in a timely fashion to avoid needless expenses.

A general contractor’s ability to orchestrate a construction project will save you time and money. Even in ways you may not even anticipate. For example, say you work with a man who manages his own renovation project from the ground up. He unwittingly schedules carpet installation before painting. And as a result, the new carpet is ruined by paint dribbles and bootprints. Had he partnered with a pro, he would not have had to pay for carpeting twice.


General Contractors Have Already Established Connections With Local Subcontractors

A general contractor’s Rolodex (or contact list, if you were born after 1985) is already filled with subcontractors. Carpenters, electricians, drywallers, painters, and all the other subcontractors a custom home project requires to proceed efficiently. A good general contractor has also identified subcontractors in your area who do honest and high-quality work.

Most importantly, a capable general contractor assures steady work to their subcontractors. Those subs will lower their rates in consideration of the job security a general contractor provides. Which in turn, carries over to significant savings for you.


General Contractors Receive Better Prices for Materials

Just like they receive bulk discounts on labor, so too do general contractors pay less for the construction materials they frequently use. And a reputable general contractor doesn’t charge their client premium prices for materials and then pocket the difference. They pass those savings along as well.

But your general contractor won’t just save you money upfront with their bulk discount. Because they have likely spent decades building and renovating homes, a general contractor already knows which materials provide the greatest value. They can save you the headache of needless repairs which low-quality materials will inevitably require.


General Contractors Are Licensed, Bonded and Insured

You have likely heard many construction and renovation professionals boast that they are “licensed, bonded and ensured.” But what does that really mean?

  • Licensed – The contractor has passed certain tests and otherwise proven that they are competent in their trade.
  • Bonded – The contractor has purchased a surety bond, which protects the third party that has hired them from losses resulting from theft, incomplete work and other damages that could directly result from the contractor’s failures.
  • Insured – The contractor has purchased insurance policies such as workers’ compensation and general liability insurance to guarantee even further protection to their clients.


In short, a general contractor has already demonstrated competence in their trade. And they have invested in protecting their clients against several types of risks. That provides indispensable peace of mind while you are building your custom home.

Are you planning to build a custom home in Central Minnesota? The Sherburne State Bank team is standing by to help you secure the land loan or construction loan you need to make your dream home a reality. We welcome you to come visit one of our branches in Becker, Monticello, or Princeton in person, or contact us today!

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