How Many Subcontractors It Takes to Build a New Home
Ever heard of the joke how many people does it take to screw in a light bulb? Well this is the thought process when approaching the subject of how many subcontractors it takes to successfully build a new home. When we hear the term builder, some new home buyers think that a builder has a wide range of employees that each do the specific tasks it takes to “put a home together.” Some home buyers don’t realize that builders are more the organizational
and contractual arm of the building process, a hands-on, supervisory position. Builders use contractors and subcontractors to actually complete all of the components of building a new home. A 2015 Special Study in Housing Economics reports that builders rely on 11 to 30 subcontractors to build one single-family home. That means that there is an average of 22 different subcontractors that will be used to build one new construction home.
Based on a survey of builders done by the NAHB/Wells Fargo Housing Market Index (HMI), we can figure out what particular jobs are subcontracted out the most. Over 90% of builders sub-contract concrete work, masonry, drywall, foundations, fireplaces, technology, plumbing, electrical wiring, HVAC, carpeting and security systems. There is still a lot to be done even if the previously mentioned projects are taken care of by subcontractors.
Home buyers should know that both the builder and subcontractors are a vital part to the construction of a new home. Without one the other could not successfully do their job.