7 Questions to Ask Before Choosing a Commercial Construction Service

  Posted by: electime      22nd June 2020

The construction industry is a huge part of the U.S. economy, creating nearly $1.3 trillion dollars worth of structures every year.

In particular, the commercial construction sector of the industry has grown 4.1% of the past five years.

With so many commercial construction contractors to choose from, deciding on one for a project can make your head spin.

Let’s take a look at seven questions to ask before hiring a commercial construction service.

1. Do You Have Proof of License and Insurance?

It doesn’t matter how small your project is, you’re definitely going to want the commercial construction service you hire to be both licensed and insured.

If you have an unlicensed or uninsured contractor on the job, you’re putting both your property and your organization at significant financial risk. It’s worth being diligent here. Make sure that the name on the contract matches the licensed name and that their license number is listed on the contract.

2. What Do You See as the Biggest Challenges for This Project?

This is a great question to ask when you talk to contractors because it both gives you information about your project and gives you a sense of how knowledgable they are.

A professional contractor with a lot of experience will be able to peer down the road and envision potential issues. This is a great time to ask them what their protocol is when changes do arise, whether their required by the nature of the project or desired by the owner.

3. How Often Do Projects Miss Deadlines?

When you’re hiring a commercial construction service, it’s best to be frank about asking the important questions. You’ll also want to ask this question to any references they provide.

Your timeline is important, and you need to be able to believe a contractor if they say they’ll have a project done by a certain date. If they have a long track record of dragging projects out well beyond their deadline, it’s probably best to find somebody else.

4. What Is Your Contract Delivery Method?

There are three most common delivery methods for construction contracts. These are fixed-price or lump sum, cost plus, and guaranteed maximum price (GMAX). It’s crucial that you understand these different types of commercial construction budgets and which one your contractor uses before signing on.

With the fixed-price, or lump sum, method the price of the contract is decided upon before the service is performed. The contractor isn’t required to disclose how his costs break down, and he can keep whatever money is left over after his costs. In this method, the contractor has the right to make adjustments that make the job more profitable.

The cost plus delivery method is where the cost of the contract is the cost of the work plus the contractor’s profit and overhead. In this method, the owner is assuming the risk of surprises that can crop up. Contractor’s are not necessarily motivated to save money.

With the GMAX method, the contractor guarantees a set price that the project will not exceed. In this method, you’ll be able to see the breakdown of costs while having the peace of mind that the project won’t get unexpectedly pricey.

5. What Is Your Availability and Schedule Like?

It’s vital to understand how long a project will take, as it likely impacts other decisions and projects you’re working on. Talk to your contractor and discuss how their schedule is prepared, followed, and updated. You’ll also want to have a clear sense of when the project could begin and when they can ensure it will be completed by.

6. Can You Share Any References and Reviews?

When you’re hiring any company, it can be incredibly helpful to hear what others have to say about them. If a company is sheepish about passing on references and reviews from previous clients, this is a red flag.

You can ask their references any number of questions, and it can be helpful to ask the same questions to the references and the contractors. Seeing how well their answers align can give you a sense of how honest or dishonest the contractors are.

You might also want to go so far as to ask who their materials are supplied by. Look at the references and reviews of the suppliers as well. If it’s time for you to embark on a big project, check out these available materials.

7. Can You Tell Me About Your Business and Its History?

This will give you the opportunity to learn how long the contractor has been in business and how much experience they have. You’ll also learn about what states they’re licensed to work in along with other useful information.

This is also an opportunity to learn if the contractor has worked on other similar projects, or if your project would be a first-time for them.

It’s Worth Taking the Time to Hire the Right Commercial Construction Service

When you have a big commercial project underway, the last thing you want is an inexperienced, flaky, or incompetent commercial construction service. If you do your research and ask these questions before hiring a company, you’ll be seriously mitigating the risk of an unfortunate outcome.

There are a lot of reputable, honest, and competent contractors out there, but that doesn’t mean there aren’t some people that might try to scam you. Protect yourself, your organization, and your property by doing your due diligence.

Did you find this article about questions to ask commercial construction services helpful? If so, be sure to check out the rest of our blog for more informative articles.