Frequently Asked Questions About Construction

We know you might have questions about construction or would just like to understand construction language on a deeper level. Here is a resource to get you started, answer some of those questions and link to resources that dive a bit deeper to help paint a clearer picture of the processes that go into building.

Both General Contractors (GCs) and Construction Managers (CMs) oversee a project to ensure that the job is completed safely, on time, and according to specifications. However, a CM typically employs subcontractors to do the actual building work. A GC manages the construction work, and if they employ an in-house labor force (known as self-perform work), they will use their own teams to do the actual construction. Both GCs and CMs can get involved early in the project lifecycle by contributing to the design, scheduling and procurement processes.

Self-perform work (SPW) is work that a GC performs with its own workforce of skilled tradespeople. This includes hiring its own employees, buying materials and providing equipment and labor for a project. Generally, SPW refers to trade work that is part of constructing the building or facility, such as concrete and drywall, but can also include scopes like demolition, electrical, and doors, frames and hardware, among others.

Skilled labor refers to workers who possess abilities, training and safety-minded expertise within their industry. Skilled labor positions bring proven experience and knowledge to jobsites and construction businesses. Skilled laborers may attend a vocational school, university, community college, or technical school, or learn their skills on the job as an apprentice. GC that self-perform work often offer on-the-job training and/or apprenticeship programs, as do many local unions.

A labor broker is a firm that sources skilled workers employed directly by a firm that in turn contracts labor only to a trade contractor or GC. Sometimes these labor broker firms contract skilled workers via 1099.

A 1099 contract worker is a freelance worker or an independent contractor. In construction, employers may employ a 1099 worker as a loophole to avoid paying living wages or provide benefits to a skilled worker. As a 1099 independent contractor, the individual is responsible for any taxes that are owed. The firm that contracts the 1099 workers does not pay any payroll taxes but is responsible for reporting earnings to the 1099 worker.