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MTD University

How to Evaluate a General Contractor

CONTRACTOR EVALUATION CRITERIA

Licensing and Insurance

  • Verify the contractor is licensed in your area and has adequate liability insurance. If not, run, don’t walk, to find another contractor.

Experience and Expertise

  • Ask how many years the contractor has been in business and the number of projects competed that are similar to yours. Look at the company’s portfolio of similar work.
  • Ask about the specialists they use as subcontractors. How long have they worked with them? What is the turnover rate? Have there been any problems?

References and Reviews

  • Ask for and contact past client references. A good contractor will be happy to provide names. Check online reviews and ratings. No company is perfect but look for consistent positive feedback.

Communication Skills

  • How often can you expect to hear from the contractor through the design and construction process? Is communication built into the project phases?
  • Is the contractor clear in explaining processes and milestones? These are good questions to ask past client references.

Detailed Contract and Estimates:

  • Expect your estimate and contract to be itemized and comprehensive, with clear contract terms and conditions and a specific timeline and milestones.

Financial Stability:

  • Ask about financial stability. Is there any history of bankruptcies or major lawsuits?

Project Management Approach

  • What is the contractor’s process for managing the project?
  • How does it work?
  • Do they use project management software?

Design and material selection

  • Is the contractor a designbuild company that creates the design and architectural blueprints? If not, does the company partner with specific designers who specialize in your type of project?
  • Some contractors will not research, specify, and order materials to keep the time and costs down and avoid any potential for errors. Designers specialize in material selection and will collaborate with you on specifications, orders, and timing.

Permits and Regulations

  • This is critical.
  • What is their knowledge of local building codes and regulations.
  • Do they pull permits and arrange inspections?
  • What issues have they encountered in the past?

Warranty and AfterService

  • Is there a workmanship warranty and for what period of time?
  • What is the process for addressing issues after the job is completed?

Professionalism

  • Is the contractor punctual for meetings?
  • What is the overall demeanor?
  • Does he or she demonstrate a sense of integrity and professionalism?
  • How will the team protect your property during construction?

ProblemSolving Skills

  • This is hard to assess in advance, so ask for past examples of solutions to unexpected issues.
  • Was the solution appropriate? Creative? Costeffective?

Price:

  • You are making a large investment, but beware of quotes that seem too good to be true.
  • Pricing should be competitive but reasonable for the scope of work.
  • Ask about the process and pricing approach if changes need to be made.