Key Takeaway:
Working with a self‑performing contractor saves money by eliminating a layer of markup, reducing the need for separate supervisory staff, and providing reliable, in‑house support for warranty and follow‑up issues.
As you contemplate the right contractor for your project, there are numerous factors to consider. Business owners want to work with a builder they trust to deliver quality construction on time and within budget. How do you ensure you are making the right selection? The difference between choosing a self-performing contractor and a construction company that relies on subcontractors translates into bottom-line cost benefits.
What is the difference between self-performing and subcontracting?
Simply put, self-performing contractors provide hands-on labor for their project while traditional general contractors manage subcontractors from separate companies. As a result, working with a self-performing contractor like Ford Construction ensures greater control over project quality and timelines, since their own crews perform tasks like wall construction, framing, finish carpentry, and specialized repairs.
The Ford Construction Team provides the following services:
Specialized Repair
Hand Demo for Int/Ext
General Install
Concrete Work
– Footings
– Walls
– Slabs
– Bollards
Rough Carpentry
– Wall construction, framing, and insulation
– Roof framing
– Drywall installation, taping, painting
– Lumber and metal studs
Finish Carpentry
– Cabinet installation
– Countertop installation
– Trim and casing installation
– Door installation
When determining the best construction company for your project, there are advantages to selecting a self-performing contractor, such as better quality, safety, and scheduling control. Why? This hands-on, single-source approach minimizes communication gaps and helps resolve issues quickly. Clients often experience improved efficiency, accountability, and consistent workmanship throughout the project. All of these factors translate to what’s most important to the majority of clients—the project cost. Consider the following cost benefits of working with self-performing contractors like Ford Construction.
1. Fewer markups
In a typical construction manager (non‑self‑performing) model, multiple companies translate to multiple markups. For example, if a concrete contractor provides a bid, the price will include a markup for profit. Then the general contractor/construction manager will add another markup on top of the concrete contractor’s price. Now multiply those markups across every subcontractor involved with the project.
What is the Cost-Benefit? One less markup, which results in a lower overall project cost.
2. Reduced supervision costs without sacrificing quality control
When it comes to project management and supervision, working with a self‑performing contractor means that the company providing the labor is on-site doing the work. Furthermore, the team is overseeing other trades involved in the process. The crew’s consistency provides a greater source of accountability and quality control. The team can answer questions and resolve problems as they arise.
In contrast, a non-self-performing company needs a construction manager to come to the site to complete inspections and answer questions. This model impacts the project from both a time and money perspective. The construction manager is an added salary on the job, and the work may often need to pause waiting for the inspections, communication, and approvals to move forward.
What is the Cost-Benefit? Supervision costs are minimized while maintaining a high level of project management.
3. Long‑term value
Selecting the right construction partner for a project is not a small decision, and part of the evaluation process should consider the long-term value of the partnership. Self‑performing contractors own their equipment, tools, and trucks, and typically have deep roots in the community. As a result, they are more likely to still be easy to contact when warranty work or follow‑up is needed.
Companies like Ford can handle warranty issues quickly and easily, avoiding the cost and hassle of tracking down multiple separate subs or a manager who has closed the project and moved on to other responsibilities. Furthermore, when another project arises for the client, the team has the established trust and in-house knowledge and experience to jump in quickly. This means the decision to use the self-performing company on the first job translates to efficiencies on future project work.
What is the Cost-Benefit? A team with staying power available for warranty support and a jumpstart on the next project.
As you can see, there are significant cost benefits to working with a self-performing contractor like Ford Construction. If you are considering a project and want a trusted partner who can lower the lifetime cost and risk of a project, we welcome the opportunity to discuss our process and all of the benefits of working with a self-performing construction company.
Email us at fordcon@fordconstructioninc.com or contact Bob Ford at (262)896-9370 to learn more.