In the construction industry, a commercial building contractor can make or break a project. Hiring the right contractor requires careful consideration and logic. You must look out for common mistakes that people make when hiring commercial building contractors.
Renée deVignier Biery, a construction manager and interior designer based in Wilmington, Delaware, tells Washington Post about hiring a contractor, “If you do your research and due diligence and you have checked on all of the references, you should know that you are working with a reputable firm.”
True character, trust, and mutual respect with professionalism are the real watchwords and you must try to find these qualities in a commercial building contractor before hiring.
In this blog, you will discover the top 10 mistakes clients commit while hiring a commercial building contractor and learn how to avoid them for selecting the right professional.
Mistake No.1: Making A Selection Solely Based On The Price
This Is The Most Attractive Yet Deceptive Mistake!
This is the most common one, and when you are hiring a contractor, you get quotes from many construction companies and compare them, and the natural tendency will be to select the commercial building contractor that has the lowest price tag. This is because you want to keep the project cost down, and this is not the best place to decide solely on the price.
How To Avoid – As you know, the cheapest things are never the best, and the best things come at a price. So, avoid going with the lowest price quote as they may not be the best person to trust. Possibly they are unsure of the true requirements for the project, or maybe they simply want to complete it how they want without considering your needs.
This gap in approach may lead to fatal disputes, completely jeopardizing the project’s outcome. So, don’t hire your commercial building contractor solely based on their lowest price.
Mistake No. 2: Hiring An Inexperienced Professional
Because An Experienced Professional Knows The Tricks Of The Trade!
Experience brings valuable knowledge that can be acquired only through practical application. Industry experience is pivotal while dealing with complicated construction and renovation projects. For these reasons, considering relevant experience is extremely important. Hiring an inexperienced professional is a serious contractor hiring mistake that results in increased stress, financial losses, and time delays.
How To Avoid – Before hiring the right commercial building contractor, ask about their past projects similar to yours and how they handled them. A commercial contractor with over 5 years of industry experience will thoroughly inspect your property and provide a precise assessment. Someone efficient in the Design-Build method is preferable as it has growing market demand.
As a client, you should select a seasoned professional who knows the ins and outs of commercial construction.
Mistake No. 3: Failure To Consider The References
Never Forget, Reference Is The Only Evidence!
It is routine to ask a commercial construction company for references from their past clients- customers with whom they have worked. The intention behind this is to see how they have conducted themselves during past projects and how they have treated their past customers. This will show how desirable is the person or company to become your commercial building contractor. Clients who fail to gather references before hiring a contractor may experience fraud and low-quality services.
How To Avoid – Ask the commercial contractor to provide you with client references. Once you have got them, contact and inquire with as many clients as possible and get the answers you need. You can ask clients the following questions before deciding on hiring the contractor.
- After the project was completed, were they satisfied with their selection as their commercial contractor?
- Was the project completed on time and within budget?
- Did they like the quality of their work?
- During the project execution, did they communicate well with them?
- Were they available to you when you wanted to discuss something with them?
- Did they abide by the terms of the contract?
- When requested, were they willing to make corrections and changes?
Also, search for their business on social media and consider the positive and negative reviews the commercial general contractor has received for their business.
Find out how good the commercial construction company is in finance management and people management. You can talk with people like the design team, owners of tile shops, subcontractors, and so on.
This will help you find the human nature of the commercial building contractor.
Mistake No. 4: Overlooking Safety Records
Make Safety A Priority, And Don’t Be A Fatality!
The construction industry has its own dangers, so, safety should come first. Never forget to ask your prospective commercial building contractor about their safety records before hiring for the job. It’s a non-negotiable step to ensure the safety of the workers and visitors at the construction site. Also, you wouldn’t want any expensive lawsuits to pop up.
How To Avoid – Inquire about the building contractor’s safety procedures and policies. A well-trained professional commercial construction firm will have zero or minimal safety failures. Ask the following questions before signing the contract :
- Can you show the documentation of your safety record?
- Do you have any references to prove your safety claims?
- Are you consistently successful in following on-site safety standards?
- Which guidelines does your team follow to prevent injuries?
- What are the insurance coverages that you carry?
- How will you ensure safety on our construction site?
A commercial general contractor who doesn’t answer these questions confidently, probably has safety issues to hide. When a construction firm takes care of its workforce, it also indicates its commitment to its clients.
Mistake No. 5: Not Checking On the Documents Properly
Cause, Documents Cause No Arguments!
A commercial building contractor is required to submit basic documents such as a license and insurance paperwork so that you can determine their status and legal permissions. Not checking on these documents is a big mistake clients make while hiring a contractor. General contractors must be fully insured to comply with all current laws and regulations and must be able to show enough proof for the same. Anyone unable to provide you with these critical documents, should not be hired for a commercial construction project.
How To Avoid – Hire a reputable commercial building contractor who is licensed by legal authorities and thoroughly insured. Most importantly, they must be covered by Workman’s Compensation for any injuries or deaths on your site. Additionally, the construction company must have general liability insurance for a sufficient amount to protect you from liability caused by accidents or equipment damages during their employment with you.
Likewise, you must also check their professional association affiliations so that you can easily find out their professional acumen, which is one of the most important criteria for hiring a contractor to execute your commercial building project.
Apart from this, check if they have a well-marked physical office or if they are operating out of their residence with a PO Box for letter correspondence.
Mistake No. 6: Working Without A Written Agreement
Never Let Verbal Agreements Cause Physical Disagreements:
Once you are done hiring a commercial building contractor, you must enter into a written contract with them. A well-written contract containing clear terms and conditions will defend you in court. You must insist on entering into a written agreement with the commercial construction company, outlining all the details of the project and defining the rights and obligations of each party.
Not entering into a written agreement is a grave contractor hiring mistake to be committed by a client. Most of the time, the hired general contractor will take advantage of this vital lapse on your part and will complete the project to their liking. As a result, the project will not be completed as you wish.
How To Avoid – So, always insist on entering into a well-written contract and signing it after reading and understanding each and everything contained in it, knowing the real meaning of the content of the contract and how they will impact the outcome of your project.
Therefore, hiring a commercial building contractor requires collecting and analyzing various documents and facts. Pay more attention to the human part of the transaction and take steps to find out the general contractor’s nature rather than paying more attention to their professional qualifications.
Mistake No. 7: Unawareness Of Unexpected Costs
In Commercial Construction, Awareness Is Better Than Carelessness:
When you are hiring a contractor, understand the cost estimates provided by them for the project work. Because estimates are just anticipated expenses that a contractor considers based on their previous experience. Although no commercial building contractor will give an unfair estimate, no two projects have the same objectives; there may be costs that were never part of the contractor’s vision. Hence, you cannot expect the estimated cost to be the final cost of the project.
How to Avoid – Instead, request the commercial general contractor to give the maximum possible cost for your project. This maximum cost may include any additional costs not included in the initial project plan. For example, the previously built foundation might not be durable enough and needs to be repaired; such an event would reduce long-term maintenance costs.
Never assume the estimated cost will be the only cost you will incur; always keep a reserve for unavoidable and unexpected expenses.
Mistake No. 8: No Advance & Cash Payments
As Cash Payments Don’t Qualify For Statements!
Commercial construction companies who insist on advance payment for a project signal danger. This showcases their unprofessionalism in this industry. Avoid hiring a commercial building contractor who asks you to pay the upfront deposit or any subsequent installments in cash before a project starts.
How To Avoid – As a client, you have to initially pay a small deposit amount before the project starts, which is then followed by payments in installments at pre-decided stages of the project. All the professional & experienced contractors will accept their payments in either debit card, credit card, or through money orders.
This helps the client and the general contractor have a record and proof of the payments made when ending the project contract.
Mistake No. 9: Neglecting The Communication Part
Clear Communication Is The Secret To a Successful Project!
Amidst official formalities, clients tend to neglect the most fundamental aspect of contractor hiring, good communication. Hiring a commercial building contractor who communicates clearly is a prerequisite for a stress-free project. You don’t want to hire someone who will be unreachable when you need them. Also, any commercial contractor who offers cost estimates and assessments over the phone without building inspection is a major red flag.
How To Avoid – A well-run company will have a regular means of communication between its workforce and clients. Phone calls, face-to-face meetings, and progress emails are necessary to keep everyone on the same page. You should set up a discussion meeting to inquire about their subcontractors and company ethics. Make sure the commercial building contractor understands your communication expectations.
Conducting smooth interactions indicates the honesty of the building contractor you are working with.
Mistake No. 10: Hiring A Contractor Without A Plan
A Contractor Failing To Plan Is Planning To Fail!
During the project, you will be working with your commercial building contractor for a long time. And hence, you should have confidence in the building contractor’s expertise and solutions. Your contractor should provide a detailed plan with the exact steps required to complete your project as skillfully as possible. If they are not ready with a strategic plan, it means they are not a reliable commercial contractor for your project.
How To Avoid – Throughout the construction process, there are several decisions to make. Ask your commercial contractor to present all the available options and help you choose the one that fits your budget without compromising the quality. An experienced commercial general contractor will focus on building strategies to overcome potential challenges.
Reliable contractors form a customer-oriented bond to create a productive work relationship with their clients.
5 Expert Tips on Hiring a Commercial Building Contractor
Expert Tips on Hiring a Commercial Contractor
When hiring a contractor, you must avoid making a hasty decision and rely on hard facts. Do your homework, get as much information as possible, and verify each of them carefully. Apart from professional qualifications, industrial certifications and insurance, assess their character. Below are some useful tips for selecting the best commercial contractor for your project.
1. Hire a Contractor Who Meets Your Project Requirements.
Commercial building contractors have different levels of experience and expertise. Their fields of expertise can be – architecture and design, purchase and supply logistics, permits and licenses, or building codes and regulations. Hire someone who aligns with your project requirements.
2. Hire a Contractor with Relevant Experience.
The contractor should be experienced in your type of project. If you are requesting bids from multiple commercial building contractors, look if they are using the same project set of specifications. The National Association of Home Builders (NAHB) recommends, “You can’t effectively compare estimates from contractors who plan to use different brands of building materials.”
3. Take a Take to Select the One.
Another thing to remember is, not to hurry the contractor hiring process. Ask candidates about their previous construction projects similar to yours, experience, and approach to solving challenges. Seek references from past clients to assess their work ethic and trustworthiness.
4. Conduct Interviews Before Hiring.
Stay open to all the options. Interview suitable candidates with an extensive list of questions. Understand their knowledge of local building codes and regulations. Ask what building permits and weather conditions your team needs to be careful of.
5. Evaluate Different Contractors.
Identify the merits and demerits of at least three to four commercial building contractors. Compare their price proposals, insurance, and project management skills from past work. Take enough time to evaluate everything before hiring the right commercial building contractor.
To Conclude
A construction project is a long-term commitment. No project owner wants to suffer from the headache and expense of holding a commercial contractor accountable for poor performance, delays, and other blunders. Therefore, avoiding these common contractor hiring mistakes is critical. A building contractor who helps achieve your vision with expertise, experience, customer service, and flawless implementation is the key to a project’s success.
Partner with Us
We hope this article has made you well aware of the most common contractor hiring mistakes you could make. If you are looking for an experienced commercial building contractor, feel free to contact us.
Constructive Solutions, Inc. is an experienced commercial general contractor delivering unrivalled services to clients in San Francisco, San Jose, and San Mateo regions. From planning and preconstruction, to design, construction, and post-construction services, our expert team will help you with every step of the commercial building process and turn your dream into reality.
FAQs
What other mistakes should I avoid while hiring a contractor?
Avoid hiring a commercial general contractor who doesn’t embrace construction technologies. Technology today is a huge part of building projects, and a progressive commercial building contractor must use –
- Construction management software
- BIM for 3D models
- Budgeting tools
- Real-time communication applications
- Drones for on-site safety, and many others.
What precautions to take regarding change orders with my commercial contractor?
When you’re signing a contract, examine if your construction company has included some percentage of the amount as contingencies for funding unexpected change orders. If such a clause is not mentioned, additional costs and disputes may arise during the commercial construction process.
What type of warranties should I expect from a commercial contractor?
Typically, you should expect a workmanship warranty, material or equipment warranty, call-back warranty, and design-build warranty from commercial building contractors.
Relevant Resources:
- 10 Tips for Hiring a Commercial Remodeling Contractor
- What Is Interior Construction Contractor and Why Should You Hire Them?
Constructive Solutions, Inc. is a full-service commercial construction company serving San Francisco and Bay Area.
Whatever your vision, we have the resources, experience, and insight to make your concept a reality, and a space where your business can flourish.
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