NAICS 238 - Specialty Trade Contractors

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What is NAICS 238

NAICS code 238, Specialty Trade Contractors, encompasses businesses primarily engaged in performing specific construction activities that are part of building projects but do not involve managing the entire construction project. These activities include specialized tasks such as concrete pouring, site preparation, plumbing, electrical work, and painting. Specialty trade contractors often work as subcontractors for general contractors or for-sale builders, although they may also contract directly with property owners, especially in remodeling and repair projects. Their work typically includes new construction, additions, alterations, maintenance, and repairs. These contractors usually perform work on-site but may also operate shops for prefabrication or other preparatory tasks. This subsector is diverse, reflecting the variety of specialized skills, equipment, and materials required for different trades within the construction industry.

Industry Classification for NAICS 238

The Specialty Trade Contractors subsector comprises establishments whose primary activity is performing specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) involved in building construction or other activities that are similar for all types of construction, but that are not responsible for the entire project. The work performed may include new work, additions, alterations, maintenance, and repairs. The production work performed by establishments in this subsector is usually subcontracted from establishments of the general contractor type or for-sale builders, but especially in remodeling and repair construction, work also may be done directly for the owner of the property. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work. Establishments primarily engaged in preparing sites for new construction are also included in this subsector.

There are substantial differences in types of equipment, work force skills, and other inputs required by specialty trade contractors. Establishments in this subsector are classified based on the underlying production function for the specialty trade in which they specialize. Throughout the Specialty Trade Contractors subsector, establishments commonly provide both the parts and labor required to complete work. For example, electrical contractors supply the current-carrying and noncurrent-carrying wiring devices that are required to install a circuit. Plumbing, heating, and air-conditioning contractors also supply the parts required to complete a contract. Establishments that specialize in activities primarily related to heavy and civil engineering construction that are not normally performed on buildings, such as the painting of lines on highways, are classified in Subsector 237, Heavy and Civil Engineering Construction.

Establishments that are primarily engaged in selling construction materials are classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade, based on the characteristics of the selling unit.

Breakdown for NAICS 238

  • Focuses on specific construction tasks rather than full project management.
  • Includes work such as new construction, additions, alterations, maintenance, and repairs.
  • Often performs work under subcontract from general contractors or for-sale builders.
  • Work is primarily performed on-site with some prefabrication in shops.
  • Includes site preparation services for new construction projects.
  • Establishments classified by their specialized trade function.

Included Activities for NAICS 238

  • Pouring and finishing concrete foundations and slabs.
  • Performing site preparation including grading and excavation.
  • Installing plumbing systems and fixtures.
  • Executing electrical wiring and installation work.
  • Applying interior and exterior painting and wall covering.
  • Installing heating, ventilation, and air conditioning (HVAC) systems.
  • Carrying out flooring installation and finishing.
  • Conducting building repairs and maintenance services.

Business Types for NAICS 238

  • Electrical contractors
  • Plumbing, heating, and air-conditioning contractors
  • Concrete contractors
  • Painting and wall covering contractors
  • Site preparation contractors
  • Flooring contractors

Government Buyers for NAICS 238

Government agencies across federal, state, and local levels frequently contract specialty trade contractors to support infrastructure development, public building maintenance, and renovation projects. Agencies such as the Department of Defense, General Services Administration, state departments of transportation, and local housing authorities require these specialized services to ensure compliance with safety, building codes, and project specifications. These agencies rely on specialty trade contractors to provide skilled labor and materials for focused construction tasks that are critical to the successful completion of larger government construction projects or for direct property improvements.

Contract Types & Procurement for NAICS 238

Contracts awarded under NAICS code 238 commonly include subcontracting agreements, fixed-price contracts, time-and-materials contracts, and task orders under larger multiple-award construction contracts. Procurement methods often involve competitive bidding, negotiated procurements, and small business set-asides, reflecting the specialized nature and varying scope of work. Contract values range widely, from small repair and maintenance jobs to multi-million dollar construction specialty contracts, depending on the project size and complexity. Government buyers increasingly utilize performance-based contracting and integrated project delivery methods to enhance efficiency and accountability in specialty trade work.

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