Hidden Hazards of the Suitcase Contractor
In the construction world, the choice of a General Contractor (GC) is the single most critical decision you will make for your project. You might be tempted by the lowest bid from a contractor who seems to handle everything, often referred to as a "suitcase contractor." These suitcase contractors operate everywhere, from temporary office spaces and satellite locations to the back of pickup trucks. They essentially subcontract every single scope of work while rarely having their own skilled labor or in-house expertise.
While their bid might look appealing initially, choosing a contractor that relies entirely on an outsourced workforce the "suitcase contractor" introduces an array of risks that can quickly derail your budget, schedule, and quality control. Conversely, a self-performing contractor like Raeco Builders offers a clear path to project success by directly employing the skilled craftspeople needed for key trades.
Why Cheap Quotes Destroy Projects
The lower price of a suitcase contractor often masks significant hidden costs and liabilities. Their model is built on minimal overhead, which unfortunately means minimal accountability and protection for the client.
Zero Control Over Quality and Schedule: When a GC subcontracts 100% of the work, they become merely a paper-pusher coordinating multiple parties. They lack the direct control to enforce rigorous quality standards or to quickly pivot when a sub-contractor falls behind. If a problem arises, the GC's response is limited to calling the subcontractor, leading to delays and potential rework.
Major Liability Risks: A "fly-by-night" operation often lacks proper licensing, general liability insurance, or worker's compensation. If an uninsured worker is injured on your property, or if faulty work causes damage, you could be held personally liable for medical bills and property damage. Their low price is often a direct result of cutting these essential, client-protecting costs.
Communication Breakdown: Every layer of subcontracting adds a potential point of failure in communication. The GC must relay information to the sub-contractor, who then relays it to their foreman, who finally relays it to the on-site crew. Misunderstandings multiply, leading to errors, change orders, and frustrating delays.
The Disappearing Act: Without a substantial local presence, self-owned equipment, or a long-term reputation to protect, the suitcase contractor can simply vanish if the project runs into serious trouble, leaving you with an unfinished job and little legal recourse.
The Power of Self-Performance
Choosing a General Contractor with self-performance capabilities is an investment in certainty, quality, and control. Raeco Builders directly employs its own crews for critical trades like concrete, and steel erection. This approach provides advantages that the suitcase model simply cannot match.
Unmatched Quality Control: When the contractor’s own employees are executing the work, they are held to the company's established, high standards. Raeco’s reputation is directly tied to the craftsmanship of our own crew, leading to superior and more consistent results.
Schedule and Budget Certainty: Self-perform contractors can mobilize their own teams immediately, without waiting for external bids or subcontractor availability. If one area of the project is unexpectedly delayed, they have the flexibility to reallocate their own labor to keep the overall schedule on track. This translates into more accurate estimates and fewer surprise costs.
Integrated Safety Culture: Safety is a culture, not a checklist. Raeco Builders instills a unified safety culture across all our teams. Because our employees work together regularly and are accountable to the same management, they better understand and enforce safety standards, leading to a safer job site and lower risk for all parties. Raeco Builders is the first company in South Dakota to obtain the prestigious AC478 accreditation, and one of fewer than 25 companies nationwide.
It verifies Raeco Builders has compliance in the following areas:
Documented safety and training program
Documented management system
Job-Site Specific Assembly Plans
Expert Problem Solving: A self-performing GC has genuine, hands-on expertise. When a complex issue arises, their in-house experts can solve the problem directly on-site, saving valuable time and eliminating the "finger-pointing" that is common when multiple external subcontractors are involved
A Secure Investment
While a self-performing contractor's initial bid may not be the absolute lowest, the security, efficiency, and superior quality they provide offer far greater value in the long run. By minimizing project risk, eliminating costly delays, and ensuring a high-quality finished product, a self-performing GC turns a stressful build into a predictable and successful investment.
Don't let a cheap quote from a suitcase contractor compromise your project; choose Raeco Builders with the hands-on expertise and accountability of self-performance.