Common Mistakes to Avoid When Hiring A Commercial Contractor
Choosing a commercial contractor for your construction project is not as easy as it may appear. There is a lot more work involved than simply asking for a quote. Whether you are constructing a brand-new office building, renovating a shopping mall, or remodeling a restaurant, the success of your project will require due diligence and attention to detail. You can help ensure a successful outcome by avoiding these five common mistakes when hiring a commercial contractor:
Choosing a commercial contractor
When hiring a commercial contractor, there are many factors to consider. While the price is one of those factors, your decision shouldn’t be based solely on price. An unscrupulous contractor might present a low bid offer to get the construction project, then hit you with costly change orders that significantly increases the bid price to complete the job. You may also have an inexperienced contractor willing to do the job for a lower price but may lack the necessary skills and resources to complete the project on time or within budget to your satisfaction.
Hiring an inexperienced contractor
Another common mistake is hiring a contractor that is new to the industry or doesn’t have the experience for your type of commercial project. Most commercial construction projects are complicated builds with many moving parts. Make sure the contractor you hire has the experience in building your kind of project. For example, if you are constructing or renovating a restaurant, hotel, or theme park, for instance, hiring a contractor with experience in these specialties is most likely to have the capabilities to complete your project that meets or exceeds your expectations. An experienced commercial contractor is also less likely to make costly mistakes that could negatively impact your project.
Failing to understand the risks and responsibilities
Every commercial construction project has risks and responsibilities for both the business owner and the contractor. The delivery method that you choose for your project will largely determine the risk for the project. For example, hiring a design-build contractor with a guaranteed price eliminates your risk of cost overruns. Before hiring a contractor, find out about the delivery methods that are available for your commercial project.
Hiring contractors who are not adequately prepared or engaged
When hiring a commercial contractor, it’s essential to be fully prepared to discuss your project in detail. The contractor will provide a quote and contract based on the items in your proposal. If you’re in a hurry or leave too many things to chance, the result may not be what you expected. It opens the door to misunderstandings, and the contractor may also miss pertinent details that are important to your brand or project. To protect yourself, carefully review all proposals, estimates, and contracts. If you discover that something is missing from your project, your contractor will review the agreement to determine if it’s something they overlooked. So, make sure everything you want and need like any specific types of flooring, windows, etc., are included in the contract.
Not verifying licenses and references
It’s critical to the success of your commercial project that you verify contractor licenses in your state and check references. You should always check to make sure the commercial contractor has a valid license in their jurisdiction.
Some states like Kentucky, Louisiana, and Wyoming don’t require state licensing but may be required by the county or other local jurisdiction. Also, Florida has two general contractor licenses: Certified and Registered. Certified contractors can perform work throughout the entire state, while registered contractors are limited to specific counties/municipalities where they are licensed. You can verify contractor licenses online. You can also check with the local Better Business Bureau to see if there are any unresolved complaints. Finally, before hiring the contractor, ask for a list of references of previous clients that are most similar to your type of commercial construction project. Check with the references and ask if they are happy with the quality of work and if they would hire the contractor again in the future.
