6 Common Challenges You Can Avoid Using Self-Perform Work

Challenge: According to a 2023 Workforce Survey conducted by the Associated General Contractors of America (AGC) and Autodesk, 61% of responding contractors said they’ve experienced project delays because they or their subcontractors experienced worker shortages.

How SPW Can Help: A general contractor's in-house skilled craft workforce provides more readily available labor, which adds to schedule reliability, especially for critical path trades like concrete and drywall. This helps eliminate issues related to constrained manpower. The SPW Advantage: Schedule Reliability

Challenge: Cost overruns are unfortunately considered by many to be the norm in the construction industry. Just 31% of all projects came within 10% of budget from 2020-2023 according to a study from KPMG.

How SPW Can Help: General contractors with in-house trade expertise can quickly identify, flag and avoid issues before they arise. This means the builder’s expertise can be incorporated earlier—when it can help drive the best value—in partnership with the design team. This can prevent unnecessary value engineering and scope reductions while maintaining budget predictability. The SPW Advantage: Fewer Late-Stage Change Orders

Challenge: Since 2020, 82.5% of construction materials have experienced significant cost increases, and average material prices have risen by 19%, according to Gordian.

How SPW Can Help: A self-performing general contractor has better purchasing power with vendors, leading to better pricing for you. This also translates into greater material availability when the market is strained. Combining a general contractor's purchasing power and trade-specific expertise helps avoid surprises. The SPW Advantage: Supply Chain Optimization

Challenge: Contractors who can attract and retain their in-house workforce create a win-win scenario for their business and employees. Even though 72% of contractors have increased base pay rates and bonuses in 2022, 80% still say they’re having a hard time filling positions, according to the AGC's 2023 Construction Hiring and Business Outlook.

How SPW Can Help: Contractors who employ their own crews can offer more stable career paths for skilled workers and greater retention of the best builders. Self-perform tradespeople are extensively trained and seasoned veterans of their craft—some have worked on hundreds of projects. Long-standing teams collaborate better to find diverse and innovative solutions to enhance quality and schedule, tailored for the project at hand. The SPW Advantage: Creative Solutions

Challenge: Almost half of all rework is due to poor communication among project stakeholders and poor project information, per Autodesk and FMI.

How SPW Can Help: When the general contractor and self-perform workers are on the same team, communication is more fluid. This leads to a more efficient process that leads to higher quality work. The SPW Advantage: Less Rework

Challenge: Three of the top four internal factors affecting labor productivity are related to planning, communication and collaboration, according to FMI’s 2023 survey. Construction project teams not only require planning expertise, but also the ability to adapt quickly to minimize disruptions.

How SPW Can Help: When the expertise and presence from multiple trades are found in-house, teams can better coordinate across project scopes and make any necessary updates without having to facilitate complicated change orders. The SPW Advantage: Coordination Across Trades