The New Value Chain: How Integration and Self-Perform Capabilities are Reshaping Construction

The Middleman Era Is Over: How Integrated Builders Are Reshaping Project Delivery

By Cathal Egan, Principal & Co-founder, Affect Group

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The demands for project delivery across all sectors continue to grow. Owners want earlier cost certainty, tighter schedules, and clearer accountability from concept through closeout. At the same time, vendors are tightening payment terms, increasing deposit requirements, and reducing flexibility, which pushes more financial and schedule risk upstream to the builder and, ultimately, the owner.

The highly fragmented, subcontractor-driven model that has dominated recent decades is struggling under this pressure. In many ways, the industry is beginning to shift back toward a more traditional form of general contracting, where builders had direct control over labor, materials, sequencing, and outcomes. Integrated builders are starting to separate themselves again, not by managing more complexity, but by removing layers of it.  

At Affect, we’ve been positioning ourselves for this shift from the beginning, pairing greater control over the work with technology and AI that reduce administrative drag so our teams can focus on building, coordinating, and solving problems, not just managing paperwork.

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Where Affect Is Today

We have already taken deliberate steps toward an integrated model because it gives our clients more control over cost, schedule, and quality.

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• We deliver millwork, drywall, and carpentry in-house.
  This gives us direct control over the scopes that define the critical path on interior projects, especially in residential and hospitality environments.

• We have our own millwork fabrication facility.
  Custom millwork is one of the biggest schedule risks for high-end projects, and controlling fabrication removes layers of markup, wasted coordination, and lead-time uncertainty.

• We have purchased material and equipment directly when schedules require it.
  On one project, early warnings on long-lead mechanical equipment pushed us to procure directly. It saved weeks and protected the overall delivery timeline.

• We are now building a self-perform small works / special projects division.
  This will support model units, amenity upgrades, targeted hospitality scopes, and fast-moving interior packages where responsiveness is key.

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These are real steps, already in place at Affect, that create cost transparency, reduce change-order loops, and strengthen coordination.

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Where the Market Is Heading

While our capabilities are already in motion, the broader shift across the industry is just beginning. Based on the pressure developers and operators are facing, several trends are clearly emerging.

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1. Direct Procurement Will Become Standard

Gilbane’s move with NextDirect, a dedicated direct procurement platform that allows the GC to purchase materials directly from manufacturers rather than through subcontractors, is a strong signal of where the industry is heading. By centralizing purchasing at the builder level, the intent is to lock in pricing earlier, manage logistics more proactively, and reduce the number of parties sitting between the project team and the supply chain.

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This shift reflects a broader reality in today’s market. As vendor terms tighten and deposits increase, the traditional subcontractor-led procurement model is becoming less reliable. Large builders are responding by taking ownership of material procurement, so they can control lead times, pricing exposure, and delivery sequencing. It removes unnecessary intermediaries, improves cost transparency for owners, and reduces schedule risk tied to fragmented supply chains.

This model creates:

• More predictable pricing

• Better lead-time forecasting

• Reduced schedule exposure

• Clearer alignment between procurement and field operations

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2. Some Trades Will Evolve into Labor-Only Providers

As direct procurement expands, some trades will naturally shift toward providing labor only. Many already prefer this structure because it reduces their cash-flow burden and risk.

For clients, this creates:

• Cleaner, more accurate pricing

• Fewer unknowns tied to material availability

• More direct communication on schedule impacts

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3. Centralized Purchasing Will Replace the Traditional Value Chain

Instead of fifteen trades buying independently, the GC will manage procurement at the project level. This makes sense when you consider today’s vendor pressures and the need for owners to have clear visibility into cost and schedule.

Centralized purchasing creates:

• Fewer surprises

• Consolidated risk management

• Stronger negotiating power

• Real cost transparency for developers and operators

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4. BIM Will Become a Procurement and Fabrication Tool

The evolution of BIM will accelerate this entire shift.

As models become fabrication-level, GCs will be able to:

• Export Bills of Materials directly from the model

• Purchase with exact quantities

• Coordinate shop fabrication with field installation

• Reduce redesign loops and field conflicts

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This will reduce waste, improve quality, and allow GCs with self-perform capabilities to integrate fabrication into the overall delivery plan.

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What This Means for Developers and Hospitality Clients

The movement towards integrated builders is happening because the traditional value chain no longer supports the speed, quality, or financial clarity that modern projects require.

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For your projects, this shift means:

• Cost savings from fewer intermediaries

• Real cost transparency from design through delivery

• Earlier procurement, which protects the schedule

• Higher quality because fabrication and installation sit under one roof

• Less exposure to vendor-driven term changes

• More predictable turnover and opening dates

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The market is changing, and the builders who succeed will be the ones who control more of the work, take ownership of procurement, and use technology to close the gap between design and execution.

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At Affect, we’re already operating this way, and we’re building toward the next chapter because it’s where the industry is going, and it’s what our clients will benefit from most.

If you’re planning an upcoming project and want to explore how an integrated approach can lead to better results, we’re always open to a conversation or a walkthrough of how we work.

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