A word or two on self-contracting.

Who's ultimately responsible?
Self-contracting does not automatically mean lower costs. It can cost you financial security should you not meet code or a sub-contractor not honor a warranty or correct a problem. As a self-contractor, you have no recourse should something "go wrong."

Coding: The state of Louisiana requires all self-contractors to file a homeowner/builder affidavit which states that the homeowner/builder "will be solely responsible for all codes." In addition, self-contractors are held responsible for "any and all code violations/fines and other liabilities."

Subcontractors: As a self-contractor you are solely responsible for all of your subcontractors. Subcontractor relationships are often made difficult by the fact that they are usually a "one-time" occurrence. Disputes with subcontractors can result in a lien being placed on your property.

Permitting: As a subcontractor you are responsible for securing all permits. As a permit purchaser you are liable for complying with all applicable laws.

Metrocode, the local building authority, mandates that each home under construction pass three critical inspections 1) foundation, 2) framing (open wall) and 3) final .

The electrical, plumbing and HVAC subcontractors pull their own permits for each job and each has their own inspections at required phases of the project.

Financing: If you self-contract your home, many lenders will not loan more than 80 percent of the projected cost.

Insurance: Many lenders also require general liability, because as the contractor, you are responsible for any third-party injuries that occur on your property. In addition, you may be open to increased risk of lawsuits arising from accidents or injuries occurring on your building site.

New Home Warranty: If you are a self-contractor and sell your home to another party, you are responsible for any covered structural defect during the seven-year period.