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  • Writer's pictureChristopher Jenkins

Why Construction Costs Are Going Up – What Can We Do About Them?


Self-performance capabilities in the construction industry refer to the proficiency of a construction firm to complete various aspects of a project using its own resources and workforce without subcontracting. This integrated approach can have a multitude of benefits, streamlining projects from inception to completion. Here are some of the primary advantages:




  1. Cost Efficiency: Self-performance can lead to significant cost savings. By reducing the need for subcontractors, companies can eliminate markups and manage expenses more closely. Additionally, self-performing firms often have a better understanding of the true cost of labor and materials, leading to more accurate initial bids and budget control.

  2. Improved Safety: Companies that self-perform can enforce their own safety protocols consistently across all aspects of a project. This can result in safer construction sites as the company’s safety culture is ingrained within its workforce, reducing the risk of accidents.

  3. Scheduling Control: Self-performance gives companies the ability to manage their own schedules. This can lead to faster completion times as there is no need to coordinate between multiple subcontracted firms, reducing downtime and ensuring that different phases of the project align seamlessly.

  4. Accountability: With self-performance, the responsibility for the project rests squarely on the shoulders of the firm. This single-source accountability can lead to a more cohesive project approach, with all team members aligned toward common goals.

  5. Flexibility and Responsiveness: When changes or challenges arise, self-performing firms can react and adapt quickly without the need to consult with or wait for subcontractors. This agility can minimize delays and keep the project moving forward.

  6. Skill Development and Retention: Companies that invest in self-performance often have robust training programs, which can lead to a more skilled workforce. Additionally, workers may have greater loyalty to a company that provides diverse work opportunities, leading to lower turnover rates.

  7. Competitive Advantage: Firms with strong self-performance capabilities can offer a comprehensive suite of services to clients, making them more competitive in the bidding process. They can also assure clients of their direct involvement in every stage of the construction process.


In conclusion, self-performance capabilities can greatly benefit the construction industry, offering improved quality, cost savings, and enhanced project management. However, it’s important to note that self-performance also requires a significant investment in workforce development, equipment, and management systems. Construction firms must weigh these costs against the potential benefits to determine if a self-performing model aligns with their business strategies and goals.

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