6 Tips to Avoid Common Mistakes While Hiring a Building Contractor

6 Tips to Avoid Common Mistakes While Hiring a Building Contractor

by Proforma Construction Inc, August 5, 2021

Hiring a commercial contractor takes some careful thought. When you are investing a large amount of money into a building for your business, you want to make sure the commercial contractor you hire will be as professional and credible as possible. The following tips will help you avoid many of the most common mistakes people make while hiring a building contractor.

  1. Look at More Than Just the Price

    While the price you pay is important, it shouldn’t be the only thing you consider. For example, a contractor may bid low because they use the cheapest possible materials or their work is not efficient enough. Therefore, consider other things as well. Do they have a solid reputation? Can they provide quality references? Do they have a high turnover rate in terms of employees? Getting the answers to all of these questions will help you make wiser choices.

  2. Always Check References

    Ask for a few references. Five is a good number and will provide you with valuable insight into what the contractors’ past customers really think about them. You might also check the Better Business Bureau to see if they have earned a rating or if anyone has ever filed a claim against them, and if they have, how it was resolved. Thus, references can tell you a lot about a contractor.

  3. Go through the Documents Carefully

    Always go through the documents you receive carefully. This includes copies of any time cards, bills of sale, invoices, work orders, or contracts/agreements. An unscrupulous contractor may purchase personal materials from the company’s resources, leaving you to bear the responsibility of the bill. Always go over each document as thoroughly as possible to ensure that every expenditure or inventory item is categorized correctly. It will give you a good idea as to how your money is being used and why.

  4. Never Work Without a Contract or Agreement

    Never allow a commercial contractor to start work without some type of contract or written agreement in place. This protects you in case the contractor would stop working or not perform tasks according to your standards. It also protects you from financial loss if the workmanship or materials are defective in any way. Working without a contract also limits your options for recourse if the contractor spends too much money or leaves the job unfinished.

  5. Require Approval for Unexpected Expenditures

    Mistakes can be made that may cost more than was originally expected. If the commercial contractor approaches you with a request for more money, it is important that you do a little research on your own. Unexpected expenditures can be quite costly, especially if they are for trivial things that may not have actually been required to complete the job.

  6. No Cash Advances

    Avoid paying for anything in cash. Always use business checks or money orders so that you can follow the paper trail. Digital purchases or those made with credit cards are also easy to trace and will allow you to keep an accurate and up-to-date account of all your expenditures. It’s also a good idea not to provide any cash advances. Cash advances may end up being spent on something other than materials or company expenses. Eliminate this risk by always paying with a check or debit/credit card.

Hiring a commercial contractor isn’t difficult if you always look for what is best for you and your company. Are you looking for an experienced construction company in the Bay Area? Contact the experts at Proforma Construction to learn more about how we can resolve all your construction needs. We are available at your service even during a pandemic.