When you are searching for a commercial contractor for the first time, identifying the standard positive qualities or “green flags” can significantly ease your decision-making process. Since commercial construction projects are expensive, lengthy, and require complex work, it is only necessary to hire someone with the right professional ethics and expertise.
Trust your valuable investment in the hands of a commercial contractor showing the below ten green flags.
1. Communicates and Listens
Because communication is the backbone of every healthy commercial contractor-client relationship.
A building contractor who is quick to respond, presents ideas clearly, and answers your questions with honesty is a major green flag. Look for a construction company that keeps an organized system of communication channels including phone/video calls, email updates, progress reports, and weekly meetings. Following every project discussion, you should feel confident that both parties are on the same page.
The commercial contractor will act as a single point of contact who will translate your vision to their team of professionals. Hence, a reliable professional will practice “active listening” – observing nonverbal cues, maintaining eye contact, asking constructive questions, and reflecting on said points for effective client management.
Construction projects last for months and without transparent communication between the client and the commercial contractor, they might not reach their full potential.
2. Organized and Detail-Oriented
Organization and meticulous attention to details results in efficient teamwork.
Commercial remodeling and renovation projects are highly complex undertakings. Once the contract is signed, the commercial building contractor is responsible for its entire scope of work. This includes project deadlines, costs, material procurement, labor hours, change orders, payment terms, etc. A commercial contractor who has strong organizational skills to extensively plan and coordinate large building projects will foster excellence.
Apart from being highly organized, a contractor who pays keen attention to details counts as a green flag. Successful commercial contractors will be able to notice even the most trivial problems and rectify them before they aggravate. Whether it’s the actual construction work or paperwork, attention to detail is a must-have quality both on the ground and behind the scenes.
3. Deep Industry Knowledge
A general contractor having in-depth knowledge of the construction industry makes informed decisions.
Real estate development sector is dynamic, with new construction trends and strategies emerging every day. That is why, having a solid foundation in the construction management basics while staying up-to-date with innovative techniques is a green flag trait of a progressive contractor.
Your interactions with a commercial contractor should reveal their deep understanding of building codes, safety regulations, and best practices widespread in the construction industry. Say, if you plan to extend your retail store interiors into the parking lot, but doing so could violate local building codes and attract zoning issues. Your commercial contractor will recommend solutions to ensure your project complies with these regulations.
Commercial awareness is an essential quality to look for, involving knowledge of industry trends, market demands, and impacts of current affairs on the business. A general contractor who is commercially aware will quickly adapt their strategies to leverage new opportunities and resolve project challenges.
4. Provides A Reasonable Bid
A truly professional commercial construction company will understand the importance of providing accurate estimates.
On average, U. S. construction projects exceed their budgets by a minimum of 16% or more. Hence, contractor bids need to be detailed and comprehensive, amounting to every specification from start to finish. If a commercial contractor is offering a higher initial quote matching the industry average, it’s a green flag that the bid is likely accurate and reasonable.
Whereas lower bids can mean that the construction project manager is using substandard materials, hiring inexperienced labor or will introduce actual costs upon project completion. Commercial builders with great financial insight establish realistic schedules, develop contingency plans, and evaluate alternatives for controlling project costs.
5. Positive Reputation and References
Client testimonials prove a general contractor’s track record of success and quality of workmanship.
Business owners must assess the reputation of a commercial general contractor before sealing the deal. Word of mouth, client testimonials and references, awards, and online reviews are dependable ways to reassure you of their abilities.
Commercial construction companies who aren’t hesitant to provide you with references tend to be green flags. Reach out to their past clients and inquire about their professional experience with the construction contractor.
- Did they complete the project on time and within budget?
- How were their project management and communication skills?
- Were they satisfied with the end product?
- Would they recommend the commercial contractor to friends and family?
Positive client feedback will indicate that the commercial contractor is highly trustworthy. Moreover, check ratings from your local chamber of commerce, Better Business Bureau, and other industry trade associations to examine a company’s credibility.
6. Well-Defined Contract
A green flag construction contractor is one who specifies exact terms of the agreement in a written contract.
Signing a clear, well-written construction contract saves both you and the commercial contractor from legal or financial penalties. Hire a lawyer to scrutinize if the prepared agreement is comprehensive. The mutually agreed upon contract should include a detailed scope of the work, associated costs, payment terms, schedule dates, applicable guarantees, and signatures from both parties.
The general contractor must be clear in outlining communication expectations, change order clause, contingency plans, and cancellation clause in the contract. If the company fails to clearly define terms and conditions or is reluctant to sign the contract, see it as a red flag.
7. Credentials in Place
Every reliable commercial construction contractor will have the necessary credentials in place.
The biggest green flags commercial contractors can have are licenses, permits, certifications, and insurance which comply with local, state, and federal laws. Using the “Find My Licensed Contractor” tool on the Contractors State License Board (CSLB) website, you can verify a general contractor’s license in California.
Similarly, specific certifications may be required depending on the project’s goals. For example, a LEED certification will represent the company’s proficiency in green building and design. Make sure the contractor you are hiring is adequately insured and bonded as financial backing will protect you from liabilities against costly damages.
Always ask for documentation of essential credentials before signing your contract with a commercial contractor.
8. Relevant Experience and Portfolio
An extensive portfolio of past projects represents a commercial contractor’s proven experience in the field.
Before you engage the services of any construction company, explore its portfolio to review the quality of work. Most building firms today showcase accomplished projects on their official websites. If not, always ask them to send you a track record of previous work.
The commercial general contractor should have relevant experience in handling your type of project. Also, check if they have offered the same services to businesses similar to yours and for how long. Relevant experience testifies to the professional’s mastery over the field and their ability to overcome unexpected challenges in a project. Hence, it’s a green flag clients should not miss.
9. Keeps Safety First
Safety is a commitment every reputable construction company makes.
On-site accidents can result in project delays, fees, penalties, and expensive lawsuits against the client. Make sure the commercial contractor you are hiring has an Emergency Modification Rate (EMR) of less than 1.0. In addition, review their DART metric to see how much time they have missed due to injuries.
Top construction companies design strict Environment, Health, and Safety (EHS) programs for their workers to ensure job site safety. Always inquire in detail about a company’s safety and quality procedures. Remember a project manager who maintains a good safety record, follows safety regulations, and takes a proactive approach to risk management is a top-tier green flag.
10. Project Management Skills
Sharp project management skills in a construction contractor keep projects on track and within budget.
In the US, California has the highest number of construction project management businesses. Full-service companies offering services like design-build, CMaR, and construction management often have project managers to handle their projects. Before signing the dotted line, clients must investigate their construction manager’s qualifications and track record.
Likewise, there’s no harm in asking for client references to support your due diligence. Hire a building contractor who has succeeded in handling multiple tasks, coordinating resources, and maintaining the highest quality standards. Some of the essential skills found in a green flag project manager are – strong leadership, efficiency, problem-solving attitude, flexibility, and decisiveness.
Real-Life Examples of Commercial Contractor Services
Case Study 1 – Navigating Complexity with Project Management Skills
The refurbishment of student accommodation and vertical extension to provide additional facilities in the Shoreditch London iQ building was undertaken by an experienced commercial construction contractor. Over 280 student rooms, gyms, and other facilities were renovated as well as a 2-storey Sky Lounge was built through vertical extension.
With careful planning, the commercial contractor used external scaffolding, a dedicated lift, and a fenced storage yard to ensure minimum disruption to resident students. The project was delivered ahead of schedule and the building was operational to welcome students.
Case Study 2 – Adaptability in Approach
Premium Contractors transformed an empty shell building into a retail store in Oregon City within 12 weeks. They managed the construction, installation of MEP and refrigeration services, sustainable initiatives, and establishment of a trial security system.
As the building’s shell was constructed by another contractor, Premium Contractors had to resolve issues from the previous drainage work and accommodate new design changes. With a positive attitude and teamwork, the commercial contractor successfully launched the store on schedule and received exceptional feedback from the client and the public.
Case Study 3 – Cost Savings via Value Engineering
BeingWell Hospital in Los Angeles required expansion and refurbishment services to cater to the patients’ growing demand. The hired commercial contractor built a temporary external unit within the hospital ground for the staff and patients to relocate.
The team extended the oncology ward, adding four additional chemotherapy treatment stations and a new access corridor to the pharmacy department. Since the project was charity funded, the contractor’s challenge was to make as many cost savings as possible. By value engineering the design of the ward, the project team successfully brought down the overall costs by 10%.
The result was a private and well-lit environment for patients to heal.
Conclusion
Whether you are breaking ground to construct an office space, factory, or laboratory, hiring the right commercial contractor will ultimately determine the success of your project. Partner with a company that offers impressive customer service, exudes professionalism, and has established its reputation as a trustworthy ally, delivering quality work. As you research potential commercial contractors, take time to identify the above-mentioned green flags before taking your final call.
Are you looking for the best commercial general contractor in California? We’re here to serve you. Constructive Solutions, Inc. holds a decade-long track record of quality workmanship delivered for a wide range of commercial projects.
If you’re planning to build, renovate, or remodel a property in San Francisco, San Jose, or San Mateo, contact us today.
FAQs
What are the additional green flags to look for in a commercial general contractor?
Some of the additional green flags can be:
- Ability to function under challenging situations
- Financial understanding to manage budgets efficiently
- Critical-thinking
- Negotiation skills
- A diverse range of construction services
How to find green flags in a commercial contractor?
You can verify a company’s reliability by checking its official website, local directories, review sites, or past client references.
How to hold my contractor accountable after hiring?
Take regular follow-ups and continuously evaluate their performance to hold your contractor accountable throughout the project. If they fail to meet your expectations, keep the idea of hiring alternative commercial contractors open.
Relevant Resources:
- 10 Expert Tips for Choosing the Best Commercial Remodeling Contractor
- What Can Commercial General Contractors Do? (11 Key Roles Explained)
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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