May 2, 2005
CONSTRUCTION 101: The big decision | How to choose the right contractor for residential and commercial projects
By Kevin French
Owner/vice president, Ledgewood Construction, Portland
Whether you're planning a residential or commercial building project or simply replacing an old roof, finding a competent and reliable contractor is the first step to a successful project. But hiring a qualified contractor is not as simple as calling the companies with the largest ads in the Yellow Pages and picking the first one to call back. Residential clients typically find that home improvement companies vary widely in terms of cost, professionalism, availability and specialty expertise. Similarly, commercial contractors will vary in their personnel, available technology and familiarity with local subcontractors.
Taking the time to research and select the right contractor can easily save you thousands of dollars, countless headaches and, worse, a trip to court. Recently, the Maine Legislature attempted to require licensing of contractors, but the bill failed. The good news is that you can protect yourself with some basic processes, all aimed at selecting a contractor who has the qualifications and reputation to deliver your project as smoothly as possible.
It's important to begin by thinking about your own criteria ˆ such as quality, technical ability or safety ˆ rather than simply focusing on price.
Residential projects
With any residential project, get at least three proposals or estimates. You'll be surprised at how two contractors can bid the same project and provide completely different prices. Be sure that they are drafting the proposals based on the same scope and quality of work, allowing you to compare apples to apples.
Examine a copy of the contractor's workers' compensation policy, as well as his property damage and personal liability insurance. If the contractor doesn't have the necessary coverage, you could be held liable for an injured employee or damage to a neighbor's home caused by any negligence on the part of the contractor.
Always investigate references. Don't be afraid to call the references and ask specific questions: "Were you satisfied with the work?" "Did they start and finish on time?" "Was there good communication between the contractor and homeowner?" Often, a contractor will think he did a great job on a project and use the customer as a reference, although the customer feels differently about the job. Additionally, get a list of the contractor's last 10 projects, which enables you to call any owners who are not on the reference list.
Importantly, ask yourself, "Do I feel comfortable working with this person for the duration of the project?" The key to a successful relationship with your contractor ˆ and a successful project ˆ is good communication. If you don't feel comfortable, there may be a good reason.
Commercial projects
Commercial projects are often developed by seasoned owners, or guided by an owner's representative who can manage the selection of a contractor and assist the owner in daily decisions. Commercial projects are often very large in scope and complexity and come with a big price tag, so selecting the right contractor could never be more important. If you don't have the experience yourself, consider hiring an owner's representative firm or individual who can assist you in navigating the building process and meeting your goals. If you have already selected an architect, the firm should provide you with a wealth of information and guidance during the process. (For information on choosing a construction contract, see "Signed, sealed and delivered," July 19, 2004.)
Before selecting a contractor, it's a good idea to put your selection procedure in writing. This document should identify the people responsible for choosing the contractor; these individuals should understand the selection process and the appropriate risk management procedures. When it's time to select a contractor, the owner and any consultants involved should define the applicable technical and schedule requirements, and perhaps the regulatory and administrative requirements, too. The staff should all be on the same page in their understanding of the requirements of the project.
Ideally, the contractor selection procedure will identify experienced, qualified and financially sound contractors. Before starting the selection process, the project owner should have previously identified five or six potential contractors through a request for qualifications from each that includes a description of services provided; a list of recent projects; references; and resumes of key project personnel who could be assigned to your project.
Review the qualifications to ensure that the prospective contractors have the experience necessary for the project. After narrowing the group of qualified contractors to three or four for your specific project, call their references to check on their performance. Also, call some of their former clients to learn more about their track record.
After selecting two to three qualified contractors, solicit them with a formal request for proposals. The RFP process allows for an evenhanded analysis, and helps ensure that prospective contractors understand all the factors under consideration for selection. In addition to outlining the exact nature of the project, including technical requirements and material specifications (if required), the RFP should request personnel assignments; schedule requirements; health and safety requirements; management philosophy; company structure; communication; fee as a percentage of total construction cost; and technical ability as it relates to your project. You want to understand that the firm you are selecting has the latest technology ˆ and the ability and experience to go with it ˆ to provide the greatest benefit to your project.
It is important to remember that your company may be responsible for any injuries caused to third parties by the actions of a contractor retained by your company. You should ask prospective contractors if they have a written safety program, and you should request the details of their safety record.
After you have received all your proposals, interview the potential firms and make a decision, keeping all of the above in mind. Be wary of making a decision based on fee alone, since that is a small portion of the project's overall budget. A good contractor will save you money, time and hassle.
If you keep all of these factors in mind, your next project should be a successful and rewarding one.
Whether you're planning a residential or commercial building project or simply replacing an old roof, finding a competent and reliable contractor is the first step to a successful project. But hiring a qualified contractor is not as simple as calling the companies with the largest ads in the Yellow Pages and picking the first one to call back. Residential clients typically find that home improvement companies vary widely in terms of cost, professionalism, availability and specialty expertise. Similarly, commercial contractors will vary in their personnel, available technology and familiarity with local subcontractors.
Taking the time to research and select the right contractor can easily save you thousands of dollars, countless headaches and, worse, a trip to court. Recently, the Maine Legislature attempted to require licensing of contractors, but the bill failed. The good news is that you can protect yourself with some basic processes, all aimed at selecting a contractor who has the qualifications and reputation to deliver your project as smoothly as possible.
It's important to begin by thinking about your own criteria ˆ such as quality, technical ability or safety ˆ rather than simply focusing on price.
Residential projects
With any residential project, get at least three proposals or estimates. You'll be surprised at how two contractors can bid the same project and provide completely different prices. Be sure that they are drafting the proposals based on the same scope and quality of work, allowing you to compare apples to apples.
Examine a copy of the contractor's workers' compensation policy, as well as his property damage and personal liability insurance. If the contractor doesn't have the necessary coverage, you could be held liable for an injured employee or damage to a neighbor's home caused by any negligence on the part of the contractor.
Always investigate references. Don't be afraid to call the references and ask specific questions: "Were you satisfied with the work?" "Did they start and finish on time?" "Was there good communication between the contractor and homeowner?" Often, a contractor will think he did a great job on a project and use the customer as a reference, although the customer feels differently about the job. Additionally, get a list of the contractor's last 10 projects, which enables you to call any owners who are not on the reference list.
Importantly, ask yourself, "Do I feel comfortable working with this person for the duration of the project?" The key to a successful relationship with your contractor ˆ and a successful project ˆ is good communication. If you don't feel comfortable, there may be a good reason.
Commercial projects
Commercial projects are often developed by seasoned owners, or guided by an owner's representative who can manage the selection of a contractor and assist the owner in daily decisions. Commercial projects are often very large in scope and complexity and come with a big price tag, so selecting the right contractor could never be more important. If you don't have the experience yourself, consider hiring an owner's representative firm or individual who can assist you in navigating the building process and meeting your goals. If you have already selected an architect, the firm should provide you with a wealth of information and guidance during the process. (For information on choosing a construction contract, see "Signed, sealed and delivered," July 19, 2004.)
Before selecting a contractor, it's a good idea to put your selection procedure in writing. This document should identify the people responsible for choosing the contractor; these individuals should understand the selection process and the appropriate risk management procedures. When it's time to select a contractor, the owner and any consultants involved should define the applicable technical and schedule requirements, and perhaps the regulatory and administrative requirements, too. The staff should all be on the same page in their understanding of the requirements of the project.
Ideally, the contractor selection procedure will identify experienced, qualified and financially sound contractors. Before starting the selection process, the project owner should have previously identified five or six potential contractors through a request for qualifications from each that includes a description of services provided; a list of recent projects; references; and resumes of key project personnel who could be assigned to your project.
Review the qualifications to ensure that the prospective contractors have the experience necessary for the project. After narrowing the group of qualified contractors to three or four for your specific project, call their references to check on their performance. Also, call some of their former clients to learn more about their track record.
After selecting two to three qualified contractors, solicit them with a formal request for proposals. The RFP process allows for an evenhanded analysis, and helps ensure that prospective contractors understand all the factors under consideration for selection. In addition to outlining the exact nature of the project, including technical requirements and material specifications (if required), the RFP should request personnel assignments; schedule requirements; health and safety requirements; management philosophy; company structure; communication; fee as a percentage of total construction cost; and technical ability as it relates to your project. You want to understand that the firm you are selecting has the latest technology ˆ and the ability and experience to go with it ˆ to provide the greatest benefit to your project.
It is important to remember that your company may be responsible for any injuries caused to third parties by the actions of a contractor retained by your company. You should ask prospective contractors if they have a written safety program, and you should request the details of their safety record.
After you have received all your proposals, interview the potential firms and make a decision, keeping all of the above in mind. Be wary of making a decision based on fee alone, since that is a small portion of the project's overall budget. A good contractor will save you money, time and hassle.
If you keep all of these factors in mind, your next project should be a successful and rewarding one.
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