What Is Self Perform Work in Construction?

Self-perform work in construction refers to the practice where a general contractor (GC) executes various construction tasks using its own labor force rather than subcontracting these tasks to specialized contractors. This approach allows the GC to have greater control over project quality, scheduling, and costs.

Key Aspects of Self-Perform Work

Definition

Self-perform construction involves the GC handling many, if not all, of the construction activities in-house. This includes employing skilled labor for tasks such as carpentry, electrical work, plumbing, and concrete pouring. The GC builds a team over time, utilizing members who specialize in specific areas of construction.

Did you know?

• For GCs managing self-perform projects, construction management software can help streamline scheduling, workforce allocation, and cost tracking.
• Tracking workforce productivity in self-perform projects is crucial, and billable hours tracking helps ensure accurate labor cost management.

Advantages

• Greater Control: By using their own workforce, GCs can manage scheduling more effectively and ensure that safety standards are upheld. This also facilitates quicker decision-making and problem resolution on-site.
• Increased Profit Margins: GCs can potentially earn more by self-performing work as they save on the markup costs associated with subcontractors. This is particularly true if they maintain a steady stream of projects for their internal teams.
• Improved Quality: With a cohesive team that understands the company culture and expectations, there is often less rework required, leading to higher overall quality in the finished product.

To document quality and productivity, construction daily reports help keep track of work progress and potential issues.

Disadvantages

• Higher Overhead Costs: Maintaining a skilled workforce can lead to increased payroll expenses, especially during lean periods when work may be scarce. GCs must balance staffing levels with project availability to avoid financial strain.
• Liability Risks: The GC assumes full responsibility for any issues arising from self-performed work. This includes managing any mistakes or accidents that occur on-site, which can lead to significant financial and legal repercussions.
• Training and Specialization Challenges: While self-performing allows for flexibility, it can also result in a lack of specialization in niche areas of construction. Ensuring that all team members are adequately trained across various trades can be resource-intensive.

To prevent time clock fraud and ensure that payroll expenses reflect actual work done, many self-performing contractors implement digital time tracking systems.

Common Applications

Self-perform construction is particularly prevalent in sectors such as:

• Heavy civil projects
• Oil and gas industries
• Pharmaceutical manufacturing
• Renewable energy projects (e.g., solar installations)
• Utility infrastructure

For companies managing large-scale self-perform projects, construction procurement ensures that materials and equipment are sourced efficiently.

Additional Resources for Self-Perform Contractors

For GCs looking to optimize their self-perform operations, here are some valuable resources:

• How to start a carpentry business – Useful for contractors focusing on self-performing carpentry work.
• Equipment inspection checklist – Ensures that tools and machinery used in self-perform projects remain safe and operational.
• QuickBooks for contractors – Helps self-performing GCs manage payroll, invoices, and financial records efficiently.

By leveraging these resources and tools, general contractors can maximize efficiency, control costs, and improve quality in self-perform construction projects.

References