How Do I Choose a Great General Contractor? To Get The Job Done

Contracted directly with the client, a commercial general contractor is the primary professional responsible for the supervision, management, and coordination of a commercial construction project from conception to completion. Commercial building contractors are usually hired by the client through a bidding process, where the suitable bid from the most reputable firm is awarded the project.

A commercial general contractor handles every component of the project. This includes acquiring building permits, hiring subcontractors, procuring materials, overseeing worksite safety, and waste management. Mostly, the general contractor divides the work among specialty contractors called subcontractors.

While you are busy scaling up your business, your general contractor will execute the new construction, renovation, or extension of your commercial facility. Hence, it’s extremely important to choose a good commercial general contractor for the project’s success.

Do not take the quoted price as the only criterion to select a general contractor for your construction project.

15 Factors to Consider When Choosing a Commercial General Contractor

1. Define Project Goals and Scope

A well-defined project is a stepping stone toward successful construction.

Before you search for a general commercial contractor, define the goals and scope of your project. Note down what are your priorities and overall vision. This will also help send bidding proposals based on which commercial contractors will provide cost estimates.

Few of the questions you may ask yourself-

• What are your goals for the project?
• What is your budget for the project?
• What is your desired schedule for the project?
• What are your design and architectural specifications?
• Are there any considerations for existing tenants or zoning regulations?
• What are your top priorities for the construction process?

2. Shortlist Reliable General Contracting Firms

Don’t consider the bids of any random contractor.

First things first, obtain bids from at least three different general contractors. Refrain from accepting bids over the phone. Conducting a walk-through of the property and discussing the project needs with the commercial contractor is the most appropriate way to get accurate cost estimates.

Once you receive all the bids, compare their estimates and services. Find their reliability and experience in working on local projects similar to yours. Such commercial building contractors will be aware of the local conditions, the local regulations, and local subcontractors for completing the project to your complete satisfaction.

Shortlist the competent general contracting firms and invite them to take part in the bidding process. Provide them with full details of your project.

3. Conduct Interviews

One-to-one interviews with contractors help in the decision-making process.

Conducting interviews with shortlisted general contractors is a great method to evaluate them practically. It helps you to check your compatibility with the contractor and get an idea of their personalities. Use the interview process as an opportunity to ask the right questions to commercial builders like these:

• Do you have project managers and supervisors?
• What is the scope of your commercial contracting services? In which areas do you specialize?
• What are your principles in terms of work environment and client relationships?
• What are your strategic business plans to get projects done cost-efficiently?
• What if any risky situation arises? How will you approach the job site risks?
• Do you offer post-construction warranty service?
• What sets you apart from your competitors?

The clarity with which the contractor answers these questions will show their confidence and honesty. If someone is giving vague answers, chances are they have shortcomings, in that case, think twice before going ahead.

4. License & Insurance

You better verify these before signing the final agreement.

The last thing you want is to get scammed or sued. Hence, it is of paramount importance to check that a commercial general contractor is duly licensed and fully insured. Without insurance, you could be liable if a worker or subcontractor becomes injured on the worksite.

Unfortunately, certain commercial contractors who claim to be licensed and insured, actually are not. That is why it’s necessary to ask about the contractor’s credentials during the interview. You can also crosscheck their credibility from your local government.

5. Check Credentials, Qualifications, and Relevant Experience

A good commercial building contractor has experience in projects similar to yours.

Some commercial contractors specialize in a particular niche while others are capable of undertaking a diverse range of projects. When sifting through potential general contractors, research their credentials, certifications, and qualifications. Review their portfolios and services to decide whether the professional is the right person for your project.

Furthermore, if a commercial building contractor has been working in the industry for a longer period, they must have gained better customer satisfaction ratings and services. A reputed construction company should have at least 5 or more years of construction experience. Ask about their previous projects similar to yours and how they have handled them.

6. Seek Referrals and Recommendations

Client testimonials are a key decision-making parameter.

Insist the general contractor on a list of references and seek feedback from past clients. Ask them about their working experience with the contractor’s team, how detailed they were in their proposals, how they tackled roadblocks, and whether they succeeded in sticking to their budget and schedule. Client testimonials reflect the efficiency and customer-relationship quality of a commercial contracting company.

If you have already hired an architect or designer, seek recommendations from them. Word of mouth from colleagues or friends who have completed similar construction projects is highly valuable.

7. Adequate Resources and Subcontractors

Because a good general contractor will have a broad network.

There will be sections of the project that need higher capabilities and deployment of the specialized workforce. Always prefer a general contractor who has adequate resources and manpower at their immediate disposal.

Subcontractors represent a general contracting firm and your potential general contractor must have a sufficient network of subcontractors. They should be able to provide their staff’s experience, qualifications, hiring and training process, and overall org chart.

8. Safety Records

With lives at stake, safety at the construction site should be your top priority.

Construction is inherently a high-risk industry in terms of worker and tenant safety. Therefore, choose a general contractor that has an excellent safety record. Make sure to ask for a full report of Experience Modification Rates, OSHA recordable incidents, and consequent time loss due to accidents.

A project suffers greatly when someone gets injured, and the associated fines and potential litigation can be serious. It’s better to inquire about the prospective company’s safety procedures and plans to prevent injuries or illnesses. Their safety policy will give you an idea of their processes for avoiding workplace hazards, conducting safety training programs, and safeguarding the environment.

You must ask the commercial general contractor following questions:

• Can you provide some documents related to your safety standards and show your safety record?
• Can you give any references to support your safety claims?
• Do you have insurance coverage?
• Do you comply with existing worksite safety standards?
• What is your procedure to ensure safety at the construction site?
• What injury prevention guidelines does your team follow?

9. Works Closely With Material Suppliers

Having a well-established network of material suppliers saves money.

Commercial building contractors have established relationships with material suppliers, and these relationships are advantageous to their clients. For construction projects, general contractors have to buy large volumes of materials, and they often purchase from the same suppliers. Because commercial builders have established relationships with suppliers, general contractors can receive discounts on materials.

Not just better deals and substantial savings on the materials cost, but you also get assured quality of the materials. When the general contractor works closely with the manufacturers, your company saves both labor and materials.

10. Itemized Bids

Itemized bids represent accurate prices that help choose the most suitable candidate.

An itemized bid is a breakdown of a project, usually on a spreadsheet, that shows specific details of workloads like materials and material costs, and labor and labor costs. It is used to compare prices and workloads from different general contractors and to determine which are the most economically profitable.

Rather than a commercial construction contractor who is giving a simple single-quote bid, award the project to the one that gives an itemized bid worksheet consisting of each component of the project. This also indicates that the general contractor has applied their mind to each phase and has thoroughly understood the nuances of the project.

11. Financial Responsibility

A good general contractor smoothly handles project finances.

Before signing a contract, clarify payment terms with the contractor. A progressive payment schedule enables you to make payments as certain milestones are accomplished. General contractors will expect a sizable down payment, but apart from modest deposits on signing (10%) or product deposits (30 – 50%), you should pay no money in advance. Be sure to clearly state a completion date or substantial completion date in the contract.

Another cautionary step you can take is to check the financial records of each building contractor. This helps to confirm that they have the capital and liquidity needed to meet payroll, buy building materials and pay subcontractors and suppliers. You can also evaluate their credit history and bonding capacity through these records. In addition, examine their tax records to avoid any problems.

12. Effective Communication

Good communication facilities are the key to a hassle-free experience.

Commercial construction is a long-term project and the general contractor you hire becomes your partner from start to finish. You will constantly express to them your opinions, success, complaints, and frustrations related to the project. This is why you need a commercial contractor whose communication style matches yours.

It is vital to know a company’s mission, work ethics, core values, payment modes, and expectations. The contractor should be clear and transparent in every step of the project. Check whether they offer communication facilities like phone calls, face-to-face meetings, and progress emails as regular means of communication.

They must consider effective communication as the bridge that merges the blueprints with the finished result. Select someone who seems compatible and comfortable to be working with.

13. Time and Budget Management

An expert professional values a client’s time and works within budget.

Esteemed commercial general contractors are well-trained to complete commercial construction on schedule and within budget. They make this possible by employing reliable processes and experienced industry experts. Today, commercial builders leverage advanced technology to manage project elements such as contracts, subcontractors, timelines, costs, permits, materials, and deliveries.

Any construction should run like a well-oiled machine, as a single blunder can prove fatal. Do not forget to ask about the general contractor’s track record for on-time project completions. Discuss with them how they will address last-minute changes, unexpected situations, and disputes that may arise over time.

14. The Project Team

Building a quality facility is important, but building quality relationships is what makes a difference.

Depending upon the scope of the project, the services required, and the construction process, the project timeline may span several months or even several years. That means you will work closely with the general contractor’s team until completion. So, meeting them and creating a good bond can prove to be useful.

The project team should participate in the proposal and budgeting process so you can assess their level of expertise. Ensure that their personalities align with you and that you feel comfortable giving ideas and sharing feedback with them. Ask yourself whether you find them reliable or not and how well they communicate with you.

15. Written Contract

The right contractor will mention all the necessary terms and conditions in the final contract.

A standard commercial construction contract is a written agreement between two parties – the property owner and the contractor. This written contract usually consists of project scope, and payment terms, and offers legal protection from sudden breaches to both parties.

Your contract with a commercial general contractor should include and stipulate the following:

• Progressive Payments Schedule
• Schedule of Values
• Time Frame
• Partial Payment Lien Waiver
• Insurance and State Business Registration
• List of References
• Project Change and Change Orders Provision
• Delays Provision

As the property owner and project financier, it is imperative to set out your expectations before the final agreement. This will save you from expensive disputes in the future.

Choosing General Contractor for Government Contracts:

While selecting the general contractor for government contracts, select the ones that are registered with the Federal, state, or local governments, and the one that is registered as a small business is preferred in many respects over others.

• The General contractor must comply with the NAICS system of business classification and their registration must be in respect of a business classified under this unique system of US business classifications.
• The general contractor must have the nine-digit business identification Dun & Bradstreet Number
• They must be holding an account with the System of Award Management (SAM)
• Must be a holder of the SAM certification issued by the Small Business Association ( SBA)
• Must have a good network within the government contracting and procurement programs and have more known people in the government agencies that often use the services of General contractors to buy products and services or undertake construction and other projects.

Final Thoughts:

Commercial construction is a huge investment for any company or business. When starting a project, hiring a reliable commercial general contractor is one of the first crucial steps to take. Start your search early and never rush into signing a commercial building contractor without extensive due diligence.

Review all the options, ask questions if not satisfied, and carefully research the pros and cons of each prospect. Finally, select a commercial construction contractor who demonstrates quality and integrity, and most importantly, fits your individual project needs.

Partner with our Experienced Team

With several years of experience in commercial construction, Constructive Solutions, Inc. knows how to achieve project goals on time, and within budget, offering quality management services to clients. To request a quote and explore our commercial contractor services, contact us today.

FAQs

What are some questions to ask a General Contractor?

Here are five questions every business owner must ask a General Contractor:

1. What sets you apart from your competitors?
2. Do you guarantee and provide warranties for your quality of work?
3. Do you have a claim record? If yes, can we get access to it?
4. How long will this construction project take?
5. Will you be using your own architects and engineers or do you plan to outsource them?

How does the bidding system work for government contracts?

Open tendering method is typically used for government contracts where a public advertisement invites all interested commercial contractors to submit their quotations and bid on the project. To know more about construction bidding, read our blog.

What essential skills should a commercial general contractor possess?

A general contractor working in the commercial building sector must be highly organized, good at communicating, adaptive to modern technology, have a problem-solving attitude, and be open to innovation.

What are Experience Modification Rates in the Construction Industry?

Experience Modification Rate (EMR) is a calculation used by insurance companies to judge a company’s past injury costs or claim history and predict future chances of risk. The average EMR rating is 1.0, a rating under 1.0 is considered safe, and anything above 1.0 is risky.

Relevant Resources:

Subcontractor Vs Contractor: What Does A General Contractor Do?

What Does A Commercial General Contractor Do?