Commercial Construction Tips: How to Tell if Your Contractor Is Doing a Good Job

Large or small construction project. A historic renovation in the heart of the old town or a new shopping mall. No matter what type of construction project you’re undertaking, you want to be sure you’ve chosen the right contractor for the job. But how do you know your contractor is doing a good job?

The success or failure of a contractor is often closely tied to you: how effectively you complete your contracting due diligence, how clearly you set your expectations, and how you and your contractor communicate with each other during all phases of construction.

Preparation and Selection

Before you begin your search for a contractor, you must clearly outline the responsibilities that you will hold your contractor accountable for. Those skills must be included in the contract between you/your company and the contractor.

Next you need to do your due diligence.

• Ask friends and colleagues who have worked on construction projects similar to yours for contractor recommendations. Ask these questions:

o How did the contractor manage the budget and materials?

o Was the project completed on time or ahead of time? If it was out of hours, why?

o Was the work performed in accordance with the agreed terms?

o Would your source work with that contractor again?

If your referral did well on each of those points, he or she may also be a good contractor on your project.

• See ALL references!

get it in writing

All good business relationships should start with “get it in writing!”

• Each contractor candidate must submit a written offer. Red flag: nothing in writing.

• You and your contractor must have a signed contract. Include details about the budget, scope of work, materials, schedule, and specific responsibilities of the contractor. Red flag: the contractor who does not sign a contract.

• Your contractor should take notes during each tour and meeting. Red flag: “I will remember…”

At work

Here are some important clues at work that your contractor is doing a good job:

• Communication: You and your contractor communicate frequently and clearly according to agreed methods (text, fax, email, phone). Red flags: Does not return calls, is difficult to communicate with, provides limited answers to questions, communicates poorly with the work team.

• Subcontractors: Contractor hires quality subcontractors with verifiable references. Red flags: conflicts at work, petty theft, substance abuse at work, wasted time, etc.

• Safety – The contractor diligently observes safety practices and insists that all workers comply with safety regulations. Red flags: preventable injuries, safety issues.

• On the job site: The contractor is working on the job site most of the time. The construction team is busy during all working hours of the week. Red flags: Contractor is infrequently on site, workers have too much downtime.

• Security: Appropriate security measures are observed at all times. Red Flags: Unsecured or missing equipment and materials, site is poorly secured during non-business hours, unauthorized persons are on site.

schedule and budget

Ideally, each construction project is completed on budget and on schedule. Realistically, there may be some disruptions to the schedule and unexpected costs.

Ask yourself some final questions:

• Is my contractor providing me with accurate and up-to-date information on all aspects of the work and construction progress?

• Are you managing resources, budget, personnel, and materials effectively and appropriately?

• Do crew members work in harmony with each other?

• Are my goals being met for this project?

When you can answer yes to these questions, chances are your contractor is doing a great job for you. Congratulations on your choice and on your new project!

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