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Development
Improve The Process
The Benefits Of Working With Subcontractors
By Catherine Gove
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Improve The
Process

The Benefits Of Working
With Subcontractors

By Catherine Gove

B

uilding a new self-storage facility is a significant investment that has become even more complex in recent years due to supply chain issues and labor shortages. Using subcontractors with specialized knowledge in various areas of the build can make the project go more smoothly, finishing on time and within budget. When building a self-storage facility, these skills can be even more important.

“When you hire a subcontractor, you’re hiring someone who specializes, and in almost every case will know more about it than you do,” says Charles Plunkett, CEO/founder CAPCO Steel, Inc. and CAPCO General Contracting.

Subcontractors can improve the construction process of self-storage facilities. They bring expertise, efficiency, and knowledge to a project. Establishing and maintaining good relationships with subcontractors and communicating throughout the build can lead to faster project completion and cost savings.

Expertise And Specialized Skills
Perhaps the No. 1 benefit to using subcontractors is the expertise they bring to a specific area of a project. Each trade, whether it be HVAC, electrical, or plumbing, brings a specific set of skills and knowledge to the job.

“They are efficient. They get out of the truck every morning, and they know what to do. No one has to tell them. Everybody knows what their job is. They do it every day, day in, day out,” says Plunkett.

When building a storage facility, items like doors can be very specific, and hiring subcontractors who know the industry can be especially important. Working with subcontractors who know self-storage facilities ensures they will use industry-specific tested materials and suppliers that lead to safe, secure, well-built buildings. Subcontractors also have relationships with suppliers and manufacturers that can be especially beneficial.

“By hiring a subcontractor that’s familiar and has been in the self-storage industry, just from the relationships alone, that’s a plus, that helps expedite the project completion,” says Eric Henderson, Janus International’s western region construction manager.

This can be critical now when supply shortages can cause construction delays. According to Rachel Parham, president of Noah’s Ark Development, a subcontractor who knows how to pivot when material is not available is also important.

“That’s a big thing right now,” she says, “when they read through these plans, where can they find options to value engineer or to provide you alternatives so that they can get the materials on time.”

Staffing
Skilled laborers are often in short supply these days; older workers are retiring, and fewer people are entering the field.

“We have a whole generation that decided to go to college and not go to trade schools, which did not benefit us at all because we don’t have the experience we used to have, and they’re not as readily available,” says Parham.

Using subcontractors makes staffing easier by outsourcing it to each trade. Instead of a builder managing a workforce of 40 or 50 people, each subcontractor manages its own employees. That includes everything from paying taxes to allocating sick days.

“I mean, it’s substantial,” says Henderson. “You’re looking at your taxes, your insurance, your workman’s comp; you’re looking at a lot of other overhead expenses, so it definitely reduces the overhead expense.”

Codes And Regulations
States and municipalities can have their own set of complex building codes and regulations that must be followed. Local subcontractors should know these rules and follow them to enable the facility to pass inspections and avoid legal issues.

“In almost any town, you’re going to have building codes,” says Plunkett, “and once the building codes come into play, then you start having to hire professionals. If something happens because it wasn’t built to code, it’s going to be much worse for you as an owner-operator.”

Since building codes ensure a facility is built safely and meets safety and accessibility requirements, using a subcontractor who knows the codes ensures the work will be in compliance and built soundly.

“Subs know the building codes, which assures that they meet the codes and install products correctly. This knowledge is vital for avoiding fines and ensuring the safety and reliability of the facility,” says Henderson.

Liability, Licensing, And Insurance

Subcontractors may also carry their own liability and workers’ compensation insurance to mitigate risk and protect against damages and injury.

Hiring licensed and certified subcontractors also ensures that they are a professional with a certain level of expertise and will be more likely to finish the job efficiently and safely. In some states, construction projects of a certain value will require all workers to be licensed.

Plunkett explains, “For example, in Louisiana, if the total aggregate value of the entire project is more than $40,000, everyone involved in the construction must be licensed by the state.”

Communicating With Subcontractors
Having multiple subcontractors working together on a project can be complex. It requires solid planning at the beginning and communication throughout. Working with a general contractor is one way to manage this challenge.

General contractors (GCs) discuss the scope of work and expectations of the contract with the subcontractors. The general contractor is also responsible for managing the schedule, sequencing the subcontractors, and communicating with the owner, architects, engineers, and subcontractors.

Today, GCs like CAPCO are using technology like iPads and software that allows subcontractors to view plans and make notations so all parties can see what’s going on as the project progresses. As questions arise from subcontractors, the general contractor ensures that the question is raised and resolved.

If changes are made, they make sure the cost and schedule implications are tracked. With so many different moving parts, having a general contractor who can ensure the subcontractors coordinate with each other is imperative.

“You have to have a GC that understands schedules,” Parham says, “because when you’re in the field, things change constantly, and you’ve got to make decisions, especially when you’ve got sprinklers and HVAC and electrical lines all within less than two feet of space in a building. You’ve got to plan that and schedule them appropriately so that you know who goes in first, and then you’ve got enough room for everything that goes in.”

Plunkett agrees. “We’re essentially the conductor,” he says. “This guy over here might be a great violinist, and this guy might be a great trumpet player, but they need someone leading the band to bring it all together to make it sound beautiful.”

As with subcontractors, it’s important to work with a general contractor who understands self-storage. “It’s really important to have a GC that understands self-storage, because I have worked with GCs as a developer and they know the dirt, they know the materials, they know the subcontractors, but they don’t have the experience building self-storage and they don’t understand the concept,” says Parham.

Trusted Subcontractors
Establishing and maintaining good relationships with subcontractors can lead to successful self-storage projects. General contractors often use the select group of subcontractors because they are reliable and trustworthy. Knowing how to find contractors to work with is also important when working in a new area.

“We’re not able to do what we do without subcontractors,” says Plunkett. “If you don’t have a good relationship with subcontractors, and you don’t know how to manage subcontractors well, or you don’t know how to go to a different area and find the rights of contractors to work with, you’re going to have a mess on your hands.

When finding new subcontractors, experience matters, but providing solutions to today’s issues is also important to Parham. “Experience—that’s the most important thing,” she says, “and when they provide the bid and they’ve read through the plans, making sure they have an option to give you alternatives.”

Relying on the individual strengths of subcontractors can lead to greater project efficiency. “Subcontractors are only going to expedite the project,” says Henderson. “You’re going to be able to meet your deadlines. If you try to do it all in house, it’s just going to be a nightmare for you.”

By getting a job done more quickly, and by providing quality assurance, subcontractors can also help a job stay within or under budget.

“Anytime you’re saving time, that means you’re also saving money,” says Plunkett. “Because, you know, time is money in our world. There are just so many reasons to hire subcontractors, and very, very precious few not to.”

Catherine Gove is a freelance business writer based in Madison, Wis. She has 30 years of experience.