Understanding “Self-Perform” and “In-House Labor” in General Contracting

The terms “self-perform” and “in-house labor” are often used by general contractors to describe their approach to project execution. But what exactly do these terms mean, and how do they benefit design professionals or property owners? Let us explore.

Self-Perform Defined

A general contractor oversees daily operations on a construction site, manages vendors and trades, and communicates with all involved parties throughout the project. The term “self-perform” or “in-house labor” refers to a general contractor employing their own team of craftspeople and directly managing their work, rather than outsourcing to subcontractors. Sometimes, a hybrid approach is used, where certain trades (e.g., mechanical, electrical, and plumbing) are subcontracted while the rest are self-performed.

Advantages of Self-Perform for Design Professionals and Owners

  • Nimbleness and Control: A key benefit of a self-perform general contractor is their flexibility in assigning tradespeople. For instance, if a project requires extensive painting, the general contractor can quickly assign additional painters to maintain the schedule. This level of control eliminates the need to negotiate with subcontractors for additional resources.
  • Coordination and Harmony: Having a team of various trades who work together on multiple projects fosters coordination and harmony. Like a seasoned sports team, these tradespeople know each other well and understand how to collaborate effectively, leading to a smoother workflow on the job site.
  • Finishing Ahead of Schedule: Self-perform general contractors can potentially accelerate project timelines. For example, in a large residential project, instead of waiting for one trade to complete its work before another begins, the contractor can have overlapping tasks. Painters can start taping and plastering in rooms where drywall has already been hung, rather than waiting for the entire drywall phase to finish. This approach resembles mass production, where efficiency and speed do not compromise quality.
  • Lower Labor Costs: Using a self-perform general contractor can be more cost-effective for design professionals or homeowners. Without the middleman (subcontractor), the project costs can be lower, translating to more competitive pricing.
  • Increased Site Safety: A self-perform team is more familiar with the general contractor’s safety requirements and guidelines, potentially reducing the risk of accidents on the job site.

Management is Key

The benefits of a self-perform general contractor are contingent on effective management. Design professionals and property owners should ensure the contractor has the resources and tools necessary to manage their in-house team effectively. Without proper management, the advantages of self-perform may not be fully realized.

Conclusion

Understanding the many benefits of a self-perform general contractor can be highly advantageous for design professionals and property owners. Exploring the opportunity to collaborate with such a contractor, like Liebhaber Company, is worthwhile, as it may align well with the project scope, budget, and goals.

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