Even during the good economic times, a simple construction project can become a frustrating experience for a business owner if they fail to choose the right contractor for the job. During tough economic times when the construction industry is in a downturn, choosing the right building professional for your project becomes even more critical.
We would like to share seven items that you should consider when you decide who to hire to get the job completed:
1. Integrity and a good working relationship.
Do not depend on an alright contractor for a problem-fee project. Your contractor should be someone with a good track record of integrity and who is able to maintain a close, solid relationship with the client through the proposal, planning and construction stages. It should be a contractor that you would be willing to hire on a “handshake” agreement. Trust is vital.
2. Referrals and references.
Most contractors will be able to provide references from past clients they have worked with. It is very important to contact those references to understand the type of firm and people you are considering for your project. Ask yourself these questions: Do they have a long list of repeat clients? What is the builder’s reputation on service issues after the project is completed and the final payments have been made? Are they a firm that is determined to earn their clients’ referrals?
3. Consider experience.
Not only how long the contractor has been in business, but the type of work they normally do. It probably would not make sense to hire a contractor to build a medical clinic if their only experience is in constructing manufacturing facilities, for an example.
4. Financial stability.
This could not be more important in tough economic times. Does the contractor have the financial strength to “weather the storm”? Check financial references like their bank and bonding companies. Obtain a certificate of insurance to ensure they are properly insured. You will want to be certain you hire a contractor that will be around long after the project is completed.
5. Payment process.
Find out what their process is for paying their subcontractors and vendors. How do they ensure the project owner that payments are being made and protect the owner from potential liens on the property? Ask around, if a contractor habitually pays its vendors late will have a reputation when you ask.
6. Sustainability and energy efficiency.
You may not necessarily be interested in building a LEED-certified green building, but most clients want to know their building will be energy efficient, given the rising cost of energy. What is your builder’s experience in sustainable construction? Do they have a LEED Accredited Professional on staff?
7. Budget and schedule compliance.
Find out what the builder’s track record is when it comes to staying within the building owner’s budget. A cheap price up front will do you no good if you are constantly hit with change orders to get what you really wanted, resulting in a project that goes over your budget. Remember to ask how well the contractor does in getting projects completed on time.
Even if times are slow and you are still working to make your business better, remember price shouldn’t be your only consideration when you are doing updates.
R.C. Keller & Company has been serving the businesses of Schaumburg and Chicagoland area since 1910. We know how to protect your livelihood. Give one of our licensed insurance professionals a call for a review on your business owners policy, workers compensation policy and commercial vehicle policy.