7 Key Factors to Consider When Hiring a Construction Company
There are over seven million construction companies in the U.S, which shows competition is rife.
Construction employees are the lifeblood of our country as they build our homes and cities. Perhaps you’re planning a project, but you’re not sure how to find the perfect construction company for your vision.
Sounds like you? Luckily, you’ve come to the right place. Here are seven things to consider before hiring one.
Before you Google “local construction companies” refer to your budget.
During your meeting, be upfront about the costs so the construction company can give you a realistic quote that includes raw materials, labor, and other minor expenses. Although it’s tempting, avoid choosing a construction company with the lowest price. They’re likely cutting corners or using the cheapest materials that you’ll need to replace later on.
As a general rule, choose the middle option, and don’t be afraid to negotiate once you’re assured they’re a credible business.
Whether you want a retaining wall specialist or a general contractor, consider their experience in the industry. Ask each construction company how long they’ve been established and if they’ve worked on similar projects.
Reputable construction companies will share their portfolio so you understand their vision. Also, before you hire a construction company, check out their reviews so you can see what customers are saying about their work.
Directly contact clients who had a similar project, so you can ask how well the company worked and whether they met expectations. There are likely several negative comments, but if it’s mostly positive then it’s a reliable company.
3. Management Skills
When hiring a construction company, it’s important to assess their management skills. Ask who is overseeing the project and how much experience they have in this role.
Many construction projects require contractors so make sure that the team leader is a great supervisor.
4. Proposed Schedule
Figure out the project’s deadline so you can inform candidates ahead of time.
Note, each construction company should have a firm schedule so that you know what you’re up against. Also, it’s handy if the company works with local suppliers so they have more control. If not, you’re at the risk of delays at customs which could throw your entire project.
Great construction businesses deliver fantastic results within the shortest period. But have leeway to accommodate a complex project and obstacles like bad weather.
Construction projects pose multiple risks, from injuries to ordering the wrong materials. A fantastic preventative measure is hiring a construction company that has insurance so that you’re not liable for any accidents happening on your site.
Construction companies must have general liability insurance which covers injuries and workers’ compensation. Ask to see their papers so you can check the expiry date and that the insurer is a reputable provider.
You should also ask about the company’s mechanic’s lien. Under this law, employees who have worked on your project or supplied materials, who haven’t been paid, can’t charge you.
Without this lien, if you’ve paid for labor but the company hasn’t bought the supplies, then you foot the bill. This law varies between states so check with yours before signing a contract.
Further, ask the construction company for their claim record to see if they’ve been sued. This will show you the lawsuits and whether any clients have pursued these claims, which is a major red flag.
Also, ask the company for their job safety record. This proves that the business cares about their employees’ and clients’ well-being.
6. Licenses and Certificates
Every construction company and their contractors should be licensed so contact your state licensing board to verify this. They must also carry a permit that shows they can legally carry out construction projects in their state.
Both will give you peace of mind as it shows that the company’s employees are trained and are up-to-date with the industry’s safety measures. Also, construction companies should hold a surety bond that guarantees that your project will be completed within your desired dates.
Never hire a construction company that doesn’t hold any certifications, as they will cut corners and it could result in a disaster.
7. Have a Contract
Once you’re left with three options, ask each construction company for a contract. They must make their services legally binding so you’re guaranteed a finished product.
The contract should outline what is going to be done and when it will be delivered by. It should also mention the labor and material costs, blueprint, and payment schedule.
This is key for homeowners as it makes the company stick to your deadline and budget, without facing any unexpected costs later on. Before signing, figure out a realistic payment schedule.
For instance, most construction companies ask for 20% of the total cost in three installments, which you’ll pay during the project. But don’t be pressured to pay the final sum until you’re satisfied with the final results.
Find Your Dream Construction Company Today
Hopefully, after reading this article, you will find the perfect construction company for your project.
Start by figuring out what a fair price is, how experienced the employees are, and whether they can complete your project in time. You must also check that they are insured, own licenses, and offer a written contract so the deal is legally binding. Good luck with your search!
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