How Do I Choose a Good General Contractor?

Updated On 27 May 2020.

The success of your construction project depends heavily on the General contractor you choose. As he is the person who is going to take complete responsibility for the project, do not consider it a waste of time to do your homework for finding the right general contractor for your project. Many points of action make general contracting firms stand out from among those in your local area.

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

Here, let us see the factors that must be considered while Selecting Your General Contractor:

 

• Shortlist Only Reliable General Contracting Firms

Don’t consider the bids of any random contractor:

While searching for the general contractor for your project look around and find the best contractors who are in the construction industry for a long time. Find their reliability and how well they are organized and how they are working on their projects.

As a contractor experienced in working on local projects they will have sufficient knowledge and experience in working on contracts similar to your project. They will be aware of the local conditions, the local regulations, and local sub-contractors for completing the project to your complete satisfaction.

So, shortlist only a selected few and invites them to take part in the bidding process, and provide them with full details of your project.

• Select The One With Lots Of Relevant Experience

A good general contractor would be the one who has experience in projects similar to yours:

Experience and knowledge are two vital characteristics that will help a general contractor to complete your project successfully. So give utmost importance to the level of experience and knowledge of the general contractor while you are selecting one for your project. Get all the facts regarding their capabilities and know if they can perform and complete your project in the way you want.

• Select Based On Referrals

Client testimonials are a key decision-making parameter:

While selecting the right general contractor, always insist on reference from their past clients and do not hesitate to contact as many of them as possible to know the work ethics, work standards, professional approach to the project work, availability, and ability to deploy all types of resources necessary to complete the project.

• Select The One That Has The Right Resources

The contractor should provide 360 assistance to your project:

Always give preference to the general contractor that has all the resources at their immediate disposal to work on each part of your project. Place undue stress on the special parts of the project that need higher capabilities and deployment of the specialized workforce and utilization for conducting all the special building processes that must be completed for the successful completion of the project.

• Select The One With The Required Network Of Subcontractors

Because a good general contractor will have a good network that means good work:

Subcontracting is an essential part of general contracting and the general contractor you want to select for your project must have a sufficient network of subcontractors who are well versed in completing the parts of your construction project. This is an essential factor that must weigh for or against a general contracting firm and you should not omit to take note of this vital aspect while selecting your general contractor.

• Select The One That Has Self Performing Capabilities

Always go for a self-performer for better results:

A general contractor that has all the necessary capabilities to complete the project on a self-performance basis is most preferable as they can exert tighter control over the performance of the projects. So, give more weight to a general contracting company that has in-house drafting, and self-planning, and execution resources that will offer the best control and uniformity in the workmanship with better control over schedules and costs.

• Select The One That Has Better Communication Facilities

Cause nobody likes miscommunication:

The construction project is a long-term project and the communication between you and your general contractor and with the subcontractor is a must and it is the vital link between various players engaged in the completion of the project.

So, always go for the general contracting firm that offers the best communication facilities and takes decisive actions in maintaining a high quality of communication during the completion of the project.

• A Good General Contractor Has All The Licensing & Insurance

You better verify these before signing the final agreement:

Legal compliance and liability mitigation are the most important aspects while completing a big construction project. This is very vital to the completion of the project without burdening you with legal and financial liabilities that may arise during the execution of the project.

So, the general contractor you are going to select must be the one that is duly licensed and fully insured to undertake all types of works that are necessary for the completion of the project. Before signing your final agreement with them verify that they have all the permits, licenses, and insurance coverage for undertaking all the works involved in the completion of the construction project.

• A Good General Contractor Gives Itemized Bids

Good general contractors always give itemized bids:

When you have submitted your requirements and the general contractor is in the process of submitting his bid, always prefer the one that gives itemized bidding for each part of the project. This is better than a general contractor who is giving a simple single quote bid, as it is an indication that the contractor has applied his mind to each phase of the project and has thoroughly understood the nuances of the project and has provided for each one of them.

This will give confidence to you that the general contractor is acting transparently and is quite capable of sticking with the agreed budget for the project without claiming for extension of time and cost mid-way through the project.

• A Good General Contractor Works Very Closely With The Material Supplier

The contractor will surely save your project cost:

Materials that must be used in the project takes the major part of the budget allocated for the project. You can get better deals and substantial savings on the materials cost as well as get assured quality of the materials only when your contractor works as close as possible to the manufacturers so that the materials can be purchased at discounted rates and can give you the best deals in the purchase and acquisition of materials for the project.

• A Good General Contractor Is Knowledgeable & Has The Potential Value Engineering Ideas

These are the must-have characteristics in a good general contractor:

The general contractor is the person who will be associated with the project right from the inception stages, he must be the one who can provide value additions to the project planning and execution. For this, the general contractor whom you want to select must be the one who is very knowledgeable about each phase of the project and provides the right inputs at the right time to bring in more value to the project and can give the best possible shape to the project right from the beginning.

He must be ready to try and implement new ways of completing the project and must be capable of implementing the new technologies available in the market for achieving high-quality workmanship and savings in terms of cost and time.

• A Good General Contractor Is Known For Financial Responsibility

A good general contractor is good at handling project finances:

Handling of finance is a vital aspect of general contracting and is the most vital capability that will strike at the root of the contract. So, it is highly necessary to consider how the general contractor deals with financial matters and how efficient and prudent he is in handling financial transactions with all those involved in the project.

Pay particular attention to this vital factor while making inquiries with their past clients and select the one that has shown exemplary discipline in dealing with financial matters.

While selecting the general contactor 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 than others.

• The General contractor must comply with the NAICS system of business classification and his 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
• He must be holding an account with 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 buys products and services or undertake construction and other projects.

Thus, selecting the right General contractor for your project is a lengthy process and it is worth going through the same as it is the most vitally important decision you will be taking while commencing a construction project.

So, apply your mind and consider all the relevant factors before deciding on the general contracting firm and once you have completed this process with care and caution you will not have an occasion to regret the decision later.

Relevant Resources:

Subcontractor Vs Contractor: What Does A General Contractor Do?

What Does A Commercial General Contractor Do?