DIY vs Contractor vs Design-Build

Understanding Your Options for Executing Your Remodel

The approach you choose for executing your remodeling project significantly impacts the cost, timeline, quality, and overall experience. In this chapter, we'll explore the two primary paths homeowners can take when remodeling their Portland home: managing the project yourself by hiring individual contractors, or partnering with a design-build firm that handles the entire process. We'll also examine the critical cost implications of each option to help you make an informed decision.

Two Paths to Remodeling Success

Path 1: DIY Project Management with General Contractors

This approach involves the homeowner acting as the project manager, hiring and coordinating various contractors, and making all the decisions throughout the process.

Path 2: Full-Service Design-Build Partnership

This approach involves partnering with a firm that handles both the design and construction phases under one roof, providing a single point of responsibility for the entire project.

Let's examine each option in detail.

DIY Project Management with General Contractors

Taking on the role of project manager for your own remodel means you'll be responsible for hiring, scheduling, and coordinating general contractors and specialized tradespeople, purchasing materials, securing permits, and ensuring quality control.

Cost Implications of the DIY Approach

General Contractor Costs

When working with a general contractor, you'll typically encounter the following cost structure:

Base Cost: This represents the actual cost of labor and materials
Markup: The contractor's profit margin and overhead (typically 15-25%)
Contingency: An amount set aside for unexpected issues (usually 5-15%)

General contractors in the Portland area typically charge in one of the following ways:

Fixed Bid: A set price for the entire project
Cost-Plus: The actual cost of the project plus an agreed-upon percentage
Time and Materials: An hourly or daily rate plus the cost of materials

Why Contractor Bids May Not Tell the Whole Story

While contractor bids can seem straightforward, several factors can impact the final cost:

Incomplete Specifications: Many bids are based on limited information, leading to numerous change orders later. Without detailed plans and specifications, contractors must make assumptions that may not align with your expectations.
Allowances Instead of Selections: Bids often include "allowances" for items you haven't yet selected (appliances, fixtures, finishes). If your selections exceed these allowances, the final cost will increase accordingly.
Exclusions and Qualifications: Contractors may exclude certain aspects of the work or include qualifications that limit their responsibility, potentially leading to additional costs later.
Outdated Pricing: In today's volatile material market, prices quoted in a bid may no longer be valid by the time work begins. Without escalation clauses, contractors may need to revise pricing or cut corners to maintain profitability.
Missing Scope Items: Without comprehensive design plans, important elements of the project may be inadvertently omitted from the bid.

Learn more about why contractor bids can be unreliable

Why Contractor Bid Prices Vary So Dramatically

If you've collected multiple bids for your project, you may be surprised by the wide range of prices. This variation typically stems from:

Different Quality Standards: Some contractors use higher-quality materials and more skilled labor than others.
Varying Overhead Structures: Established companies with offices, staff, and comprehensive insurance will have higher overhead costs than a contractor working out of their truck.
Different Risk Assessments: Experienced contractors may include more contingency for potential issues they've encountered on similar projects.
Scope Interpretation: Without detailed plans, contractors may interpret the scope of work differently.
Honest vs. Strategic Bidding: Some contractors may intentionally underbid to win the job, planning to make up the difference through change orders later.

Client-Supplied Materials: A Cost-Saving Option?

Some homeowners choose to purchase their own materials to save on contractor markup. While this can reduce costs, it comes with several considerations:

Potential Benefits:

Avoiding markup on materials (typically 15-25%)
More direct control over material selection and quality
Possible access to retail discounts or sales

Potential Drawbacks:

Taking on responsibility for material quality and suitability
Assuming liability for delivery timing and material defects
Loss of contractor warranty on materials you provide
Potential coordination challenges with installers
Missing out on contractor trade discounts that may offset retail markups

Learn more about supplying your own materials

DIY Remodeling: Is It Worth It?

For some homeowners, doing some or all of the remodeling work themselves is appealing. Before committing to DIY remodeling, consider:

Potential Benefits:

Significant labor cost savings (labor typically represents 40-60% of project costs)
Personal satisfaction and learning opportunities
Complete control over quality and timing

Potential Drawbacks:

Time commitment (often 3-4 times longer than professional work)
Learning curve and potential for costly mistakes
Tool and equipment investments
Physical demands and safety risks
Permitting and code compliance challenges
Potential impact on home value if work quality is substandard
Limited warranty protection

DIY remodeling is most successful for homeowners with:

Previous remodeling experience
Specific skilled trades knowledge
Flexible timelines
Physical capacity for the work
Access to quality tools and equipment
Strong project management skills

Find out if DIY remodeling is right for you

Full-Service Design-Build Partnership

A design-build firm integrates both the design and construction phases under one roof, providing a seamless experience with a single point of responsibility. This approach is becoming increasingly popular in Portland as homeowners seek to minimize risk and streamline complex projects.

Learn how design build firms keep you in charge of cost.

Cost Implications of the Design-Build Approach

Design-Build vs. General Contractor: Cost Structure Differences

The primary differences in cost structure between design-build firms and general contractors include:

Integrated Design Services: Design-build firms include professional design services as part of their overall package, while separate architects or designers would be an additional cost in the general contractor model.
Transparent Pricing: Most design-build firms use an open-book cost-plus approach with fixed fees rather than hidden markups.
Early Cost Certainty: Design-build provides detailed cost projections earlier in the process due to the integrated approach.
Reduced Change Orders: With more thorough planning and coordination between design and construction teams, design-build typically results in fewer expensive mid-project changes.
Value Engineering During Design: Design-build allows for real-time cost feedback during the design process, enabling cost-effective adjustments before construction begins.

Read our complete comparison of design-build vs. general contractor approaches

Remodel Design Plan Costs

If you're interested in professional design services without full construction services, many design-build firms (including Lamont Bros.) offer standalone design services. Typical costs for design plans in the Portland market:

Kitchen Design: $8,000-$15,000
Bathroom Design: $6,000-$12,000
Addition Design: $10,000-$20,000
Whole Home Design: $15,000-$30,000

These costs typically include:

Initial consultations and site evaluations
Conceptual designs and space planning
3D renderings and visualizations
Material and finish selections
Construction documents and specifications
Permit-ready drawings

A completed design package gives you the option to:

Execute the project with the same firm
Take the plans to multiple contractors for bidding
Implement the project yourself
Stage the project over time with clear direction

Learn more about remodel design costs

Labor vs. Materials: Where Your Money Goes in Design-Build

Understanding the breakdown between labor and materials helps explain project costs. In a typical design-build remodel in Portland:

Materials: 25-35% of total project cost
Labor: 55-65% of total project cost
Overhead & Profit: 10-15% of total project cost
Design & Project Management: 8-12% of total project cost

This breakdown varies by project type:

Kitchen Remodels: Higher material percentage due to cabinets, countertops, and appliances
Bathrooms: Higher labor percentage due to intensive plumbing and tile work
Additions: Higher labor percentage due to structural work

Explore a detailed breakdown of labor vs. materials costs

Design-Build Contractor Markup

Design-build firms typically structure their pricing with more transparency than traditional contractors. Rather than hidden markups, most use:

Fixed Design Fees: Clearly defined costs for the design phase
Construction Management Fee: A fixed percentage (typically 15-20%) that covers project management, overhead, and profit
Direct Costs: Pass-through costs for labor, materials, and subcontractors without hidden markups

This approach allows homeowners to see exactly where their money is going and often results in better value as the firm is incentivized to find cost efficiencies rather than inflate material costs.

Learn more about design-build pricing and markup

Design-Build Subcontracting Practices

Most design-build firms, including Lamont Bros., use a combination of in-house staff and specialized subcontractors. Understanding this practice helps you evaluate proposals:

Typical In-House Services: Project management, design, carpentry, and some finishing work
Typically Subcontracted: Electrical, plumbing, HVAC, concrete, roofing, and other specialized trades

Quality design-build firms have established relationships with reliable subcontractors who meet their standards for quality, reliability, and fair pricing. These subcontractors often prioritize design-build projects due to their organization and consistency.

When evaluating a design-build firm, ask about:

Their subcontractor selection and vetting process
Length of relationships with key subcontractors
Quality control systems for subcontracted work
Warranty coverage for subcontracted elements

Find out how much work design-build firms typically subcontract

Making the Right Choice for Your Project

The best approach depends on your specific project, budget, time availability, and personal preferences. Consider these factors when deciding between DIY project management and design-build:

Project Complexity

Simple, Single-Trade Projects: Often suitable for DIY management
Complex, Multi-Room Remodels: Typically benefit from design-build integration

Budget Considerations

Very Tight Budget + Available Time: DIY approach may reduce cash outlay
Value-Focused Budget: Design-build often provides better long-term value
Premium Project: Design-build ensures quality execution of high-end details

Time Availability

Limited Time: Design-build reduces management burden
Flexible Timeline: DIY approach allows for extended timelines to manage costs

Experience Level

First-Time Remodeler: Design-build reduces risk and learning curve
Experienced Renovator: May be comfortable with DIY management

Risk Tolerance

Low Risk Tolerance: Design-build provides more predictable outcomes
Comfortable with Uncertainty: DIY approach may work if you can handle surprises

Conclusion: Investing in the Right Approach

The approach you choose is as important as the materials and design decisions you make. Your choice impacts not just the initial cost, but also the timeline, quality, stress level, and long-term value of your project.

At Lamont Bros., we believe the design-build model offers the most seamless experience and best value for most Portland homeowners undertaking significant remodeling projects. However, we respect that each homeowner's situation is unique, and we're happy to discuss which approach might work best for your specific needs.

Ready to explore your options further? Schedule a free consultation with our team to discuss your project and determine the best execution approach for your Portland home remodel.

Explore the other chapters in this guide:

Chapter 1: Material Costs in Home Remodeling

Chapter 3: Remodel Cost by Home Style & Project Type

Chapter 4: Budgeting and Financing Your Home Remodel

Chapter 5: Timing Your Remodel — When to Start and What to Expect

Chapter 6: Will Your Remodel Pay Off? Understanding Your Investment