General

Self-Perform

Construction work executed by the GC's own crews, rather than subcontracted out to specialty trades.

Self-perform work is scope the general contractor executes with its own employees rather than subcontracting to a specialty trade. Common self-perform scopes for commercial GCs: rough framing, finish carpentry, drywall, doors and hardware, basic concrete, and selective demolition. The GC keeps the labor markup that would otherwise go to a sub, but assumes direct labor management, supervision, and tool/equipment cost responsibility. Specialty trades (electrical, plumbing, HVAC, roofing, glass) almost always remain subcontracted because of licensing, equipment, and crew specialization.

Well-managed self-perform produces a margin advantage: the GC captures both the GC overhead and the trade contractor's gross margin on the self-performed scope. Poorly managed self-perform destroys margin: idle crews between projects, supervision overhead, and slower productivity than a specialized sub. The contractors who win on self-perform consistently invest in: a steady backlog (so crews stay productive between projects), strong field supervision, and tight coding of self-performed labor in the job cost system so margin is visible per scope.

Frequently asked questions

What scopes do GCs typically self-perform?+

Rough framing, finish carpentry, drywall, doors and hardware, basic concrete (foundations, slabs), selective demolition, and general site cleanup. Specialty trades (electrical, plumbing, HVAC, roofing, glass) remain subcontracted because of licensing, equipment, and crew specialization.

Does self-perform improve margins?+

Yes when well-managed (the GC captures both GC overhead and the sub's gross margin on the self-performed scope). No when poorly managed (idle crew time between projects, supervision overhead, slower productivity than specialty subs). The break-even is a steady backlog plus strong field supervision.

What is the risk of self-performing too much scope?+

Crew utilization risk (paying labor cost between projects with no productive work to assign), supervision capacity (one project manager can only oversee so much active self-performed work), and the management distraction that takes attention away from running the GC business itself. Most successful commercial GCs cap self-perform at 30 to 40% of contract value.

Related terms