Trade Stacking
What It Is & How to Avoid It
by Trent Cotney, Partner, Adams & Reese, LLP
(Editor’s Note: Trent Cotney, partner at Adams & Reese, LLP, is dedicated to representing the roofing and construction industries. Cotney is General Counsel for the Western States Roofing Contractors Association and several other industry associations. For more information, contact the author at (866) 303-5868 or go to www.adamsandreese.com.)
Have you ever arrived on a job site and seen subcontractors working on top of one another? This scene is indicative of trade stacking, a level of chaos that occurs when multiple subcontractors or subtrades have been scheduled at the same time and in the same space on a construction site.
With tight timelines, it can be tempting to book trades as soon as possible, but trade stacking can result in an overcrowded, unproductive environment that could actually lead to delays.
To avoid trade stacking, general contractors must thoughtfully and systematically schedule subcontractors in a balanced manner. By coordinating their schedules and providing oversight, general contractors can ensure that subcontractors can work effectively.
Impact of Stacking Trades
When numerous subcontractors or subtrades are simultaneously scheduled on a job site, there can be detrimental consequences.
Based on research from the University of Wisconsin-Madison, construction workers need a specific amount of space to be productive. At least 200 to 250 sq.ft. of space is required for each construction worker to achieve full productivity. At 191 sq.ft. for each worker, no efficiency is lost. However, there is lower efficiency at every point under 191 sq.ft. At 90 sq.ft. for each worker, there is a 50 percent loss of total efficiency, based on projects ranging from 2,000 to 150,000 person-hours.
Trade stacking can increase the likelihood of defects resulting from poor workmanship, using the wrong designs or faulty materials, and not following appropriate building codes. Such errors can occur when too many workers are assigned to one space, leading to distractions and stress. Workers may react by working too quickly to compensate for the restrictive environment. When defective work is discovered, it may require rework activities, which lower efficiency and impact the project’s budget.
When disruptions occur, subcontractors cannot complete their work on time due to circumstances they cannot control. Such disruptions can include having to work around another subcontractor. That situation can lead to scheduling conflicts and delays, causing subcontractors to incur costs for additional labor and materials. In that case, they can file disruption claims.
A delay claim can be similar to a disruption claim because a problem has occurred and circumstances are not within a subcontractor’s control. However, a delay claim specifically notes that the issue was caused by actions, or inactions, on the part of the developer, owner, or general contractor. A delay claim allows a subcontractor more time or additional compensation to complete a job. Actions that lead to delay claims include change orders, defective designs, changing or differing site conditions, and time lost due to permit and approval delays. Another significant delay claim factor is limited or restricted access to the site, which can be caused by trade stacking.
Scheduling for Productivity
Construction sites are busy places, and everyone wants to work effectively. To accomplish that, avoid unorganized trade stacking and refine your scheduling process. Determine the best method, and best software, for scheduling your work, and ensure that subcontractors and subtrades are reasonably spaced out. A key guideline is to never exceed one worker for every 200 sq.ft. of workable ground on the job site. It may be tricky to figure this out initially, but you will be rewarded with a better-organized and highly productive site.
Final Thoughts
Trade stacking is an all-to-common construction practice. It happens when general contractors feel pressed for time, but it can turn out to be both inefficient and costly.
When you are trying to maintain a productive site and meet your timeline, it is essential that you lay out your work schedule to allow for a planned order of subcontractors. If you closely monitor their deployment, you can help prevent defective work, disruption claims, and delay claims. Along the way, you can ensure that your job site is streamlined and efficient.
