A: First, you need to check with your local residential building inspection office for your municipality. You may be required to obtain a license. Hopefully, however, you will be exempt if you are not using corporate entities for your house ownership or your general contracting activities. In other words, If Joe Smith is general contracting on a house that Joe Smith owns, then it's probably not going to require a license. However, if Joe Smith sets up ABC Corporation to renovate a house owned by XYZ Corporation, then a license may be required.

Contact an attorney or CPA for advice regarding whether or not it would be worth it to set up a corporation for any reason.

Q: Will you need any tools to be your own general contractor?

A: You will probably need is a 25' tape measure to confirm the correct placement of 2x4's, fixtures, etc. Plus, as discussed in Dealing with Contractors, Part 1, you will need an expandable folder to organize each trade.

Q: How will you know how much labor is supposed to cost?

A: You will not know for sure, but as discussed in Finding Contractors, it is important to get multiple bids and compare them. As with almost anything when trying to be your own general contractor, ask an architect or other professional for help when you have a question.

Q: What if you are afraid of making costly mistakes?

A: Let's face it. If you have never tried to be your own general contractor before, you will make mistakes. However, you will also save a tremendous amount of money that you would have otherwise paid to another general contractor. In my opinion, if you have the time and desire, it will usually be worth it to try to be your own general contractor.

When I first tried to be my own general contractor, I made a note in my notebook of every costly error that I made. I wanted to learn from my mistakes, so the notebook was quickly filled with information. That notebook became the basis of this website and the basis of my Emory University course. By learning from my mistakes, you will already be way ahead of the game.

Active builder and instructor of "Save Time and Money in Home Remodeling" cont. ed. course at Emory University