Barden’s panelized construction method gives future homeowners unmatched flexibility — including the option to take a more active role in their build. Some clients even choose to manage the project themselves, stepping into the role of custom home project manager.
For Barden Independent Dealers, this doesn’t mean losing control of the project. It means working with highly engaged clients who still need your expertise and opening the door to a new revenue stream.
While these clients take on general contractor responsibilities, they rely on you for design, materials, and guidance. Understanding how to support custom home project managers effectively can help you grow your dealership while meeting the needs of a niche but motivated segment of homeowners.
Are Custom Home Project Managers Your Competition?
Let’s get right to it – clients who act as their own custom home project manager aren’t your competition, nor are they taking away your job.
At first pass, the idea of client acting as their own GC might seem like a threat to your business. Doesn’t that mean they’ll be taking on the project in the same manner you do?
Client GC’s aren’t the DIY’ers who flip homes or convert sheds into mini-mansions. Rather, the client GC is simply a future homeowner who is taking on more of an active role in their project. The higher level of involvement does not mean your dealership and your expertise is pushed aside.
And therein lies an opportunity.
The ability for a future homeowner to act as their own GC on a project is something that many other custom home companies and dealerships don’t offer.
And while the client GC is a smaller subset of future Barden homeowners, they represent a niche market that can actually provide a boost to your custom home business.
In a certain respect, adding this to your business is no different than a car dealership keeping a few higher-end models on its lot. While there isn’t a big demand for the premium-level vehicles, there are still some customers who do purchase them throughout the year.
6 Things to Know About Custom Home Project Managers
Like any other business adding a product or service to its repertoire, there's a certain level of excitement in bringing a new offering to customers. And who can argue with another potential revenue stream?
At the same time, there are plenty of considerations that should be looked at beforehand.
The case is no different with offering clients the option to be their custom home project's manager.
Offering the custom home project manager option can draw more potential customers to your dealership. However, there are a few things we tell every Barden Independent Dealer considering this for their dealership:
- You’re still involved
- They handle insurance
- You’re still liable
- They manage the cash flow
- You still get paid
- Use a written agreement
1. You’re Still Involved
First and foremost — and we can’t stress this enough — just because a client acts as their own GC, doesn't mean they're taking over the project completely. You’ll still have an active role in their custom home project. While the scope of involvement may vary from project to project, a Barden Independent Dealer is still responsible for a few key elements (we’ll look at this more below), such as helping coordinate resources or selling the framing package.
2. They Handle Insurance
Who's responsible for getting insurance coverage for the project?
To be direct, when the client assumes the role of GC, they become responsible for getting the appropriate insurance for the project.
In more regular circumstances where you're the project's GC, your insurance policies would cover the liability of the build. This alone makes some clients reconsider being a GC for their custom home project
Why?
Getting insurance coverage for their project — and others that might be required for their project — can be a major headache and cause delays in moving forward. Unlike you, they don't have a company where such coverage is part of doing business. For the client, getting the coverage can be difficult with many hoops to jump through from insurers. Leaving the GC role to you is a much simpler and more efficient option for their project.
3. You’re Still Liable
Let’s talk liability.
Just because the client gets coverage and takes on more responsibility doesn’t mean your dealership is totally in the clear. If something goes sideways, there’s still a chance you could get looped into the situation.
That’s the trade-off of staying involved — and it’s no different than if you were the project’s GC. Your name is still tied to parts of the build, which means your dealership isn’t immune to potential issues.
This is why your existing insurance coverage still matters. Even with a client GC, having protection in place helps cover your side if things don’t go according to plan.
4. They Manage the Cash Flow
Concerning project risk, let's look at a different one: Financial.
A rather understated advantage of the client acting as their own GC involves financial risk mitigation.
When the client takes on the role of GC, they become directly responsible for ensuring funds are available when required.
This is a distinct departure from the norm where the custom home dealer, acting as the GC, often has to manage the cash flow, floating payments while waiting for the client's loan disbursements. This "financial juggling" can put undue stress on you and risk the stability of the project if not handled carefully.
However, the client acting as GC eliminates this headache for your dealership. Put simply, the client is immediately accountable for payments and keeping the project moving.
5. You Still Get Paid
What about your payment?
One concern we've heard from independent dealerships is about compensation – does allowing clients to be their own GC eliminate service commissions? In short, no. As we'll always reiterate, your services are still necessary for their project, your involvement will just look a little different.
6. Use a Written Agreement
On that note – Your involvement and what it looks like...
(Again, we'll get into this a little more down below) We can't recommend enough having a written agreement detailing everyone's role in making a client's custom home dreams come true.
For as much as it protects your company and investment, this agreement also protects the client — especially if there are any misunderstandings about what work would be done or when something should be completed.
In a way, the agreement can also serve as another roadmap for the project, making sure everyone understands what's necessary to make it happen and when certain elements need to be completed.
What Working With a Client GC Looks Like
While the client will take on the heavy lifting of managing their project, you and your dealership’s services still very much have a place in the project.
In fact, without your dealership in the picture, the client wouldn’t get far in their project at all. Barden does not sell material packages directly to clients. And if they're planning on doing any customization to their floor plan, they'll need to work with you and our Design and Drafting Department.
So who does what? We've broken down the project responsibilities in this handy chart (something that's worth showing a client considering being their own GC):
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Client GC |
Dealer |
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Grow Your Business by Supporting Involved Clients
Even when clients take on the role of custom home project manager, they are not building alone. They still rely on your guidance, your materials, and your connection to the Barden process.
These highly involved clients allow you to grow your dealership without removing your value from the project. By learning how to work with custom home project managers, you can reach a broader range of homeowners and offer a more hands-on path to building the custom home they want.
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This article was originally published in November 2023 and was recently updated to reflect current industry trends.
