Choosing the right contractor for your building project

by Rita Cortes

For the owner of a small to mid-sized business few undertakings are as daunting as a building project. The need for additional manufacturing, storage, office, or retail space may be great, but the costs and risks

are high.

If problems arise between the owner and the builder and the project is delayed or exceeds budget, it may take months or years to recover. Ingram’s asked Rita Cortes, president of Hoffman Cortes Contracting, Co. for her advice on selecting the right contractor.

When the owner of a small business is ready to begin the process of selecting a builder/contractor, what’s the best first step for the owner to take?

Obtain references from other business owners (peers) who have built or renovated their own facilities and from design professionals, particularly if the owner has already engaged an architect or engineer on the project. Based upon these recommendations, meet with the prospective contractors, tell them about your project and ask the contractors to educate you about their approach. A contractor can be a critical team participant during the early phases of planning a project.

What’s the best source of information on area contractors?

Referrals from peers, bankers or design professionals.

How does an owner know if a contractor is reputable?

Hiring a contractor is very similar to hiring an employee. Check references, look at their previous work, look into their professional, trade and community involvement, and ask other business owners or peers.

What are some key questions a business owner should ask a prospective contractor?

What is your experience? Who are your clients? What is your process? Will you work with me on a transparent basis? What information do you need from me (owner)? What process will you use to keep me (owner) apprised of project planning, construction status and when decisions need to be made?

What are questions you, as a contractor, may ask a potential customer during the selection process?

What are your objectives? What is your timeline? What is your decision making process? What will influence the decision making process? The more a contractor knows and understands about the needs of the owner the better relationship between the two. The contractor also can be a more meaningful contributor to the balancing of design and cost issues.

What are the main things an agreement between a contractor and a customer should include?

Among all of the standard provisions in most AIA and AGC documents, the agreement should include a clear and agreed upon scope of work, defined price or process of determining price, roles of owner and contractor, how problems will be resolved and how the contractor will be compensated.

What are the most common areas of conflict or dispute between a contractor and a small business customer?

The lack of a common understanding of the scope, timeline and the role of preconstruction are typical conflicts on a project. It is the contractor’s responsibility to make sure the owner understands the budget, what assumptions were included in the budget, and how long the contractor anticipates the pricing will remain good (typically 30-90 days depending on commodity prices).

How are those disputes generally resolved?

Communication, Communication, Communication.

Rita Cortes iis President of Hoffman Cortes Contracting, Co.
P | 816.842.6170
E | ritacortes@hoffmancortes.com