1. Be sure to thoroughly verify a contractor. Be sure to check references and visit a project or two that you have successfully completed.
2. Ask your architect to interview you, if you don’t already know him. The architect will know if the contractor is qualified to do the job by going over the plans prepared for you and listening to your questions and comments.
3. Ask what size job you usually work on. It is important that this is compatible. You don’t want a big contractor if the job is really small. The project will receive very little attention. You don’t want a small contractor if the project is really big. You may not have the experience in handling a large and complicated project.
4. Make sure the contractor is licensed. Hiring an unlicensed contractor and failing to obtain a permit could be a reason for paying a fine to the building department. Also, you may need to start the job and rebuild at least part of the project.
5. Make sure you have a good relationship with your contractor. Construction can be very difficult at times, and if there are conflicts, you want to know that you can communicate what you want and need. You want to be able to develop a fair and professional relationship with your contractor, where you believe there will be open lines of communication.
6. Make sure the contractor has all the required insurance. Typically this includes liability and workers’ compensation insurance. The latter is particularly important. If the construction company is very small, some states do not require workers’ compensation insurance. You should require it even if the state doesn’t. If something were to happen to one of the workers in the workplace and there was no workers’ compensation insurance, then you could be sued and your owner’s liability insurance would be at risk.
7. If the house you are going to build is very large (a house worth a million dollars or more), you may consider hiring a contractor who has a bond of the required size. Most residential projects do not require a bond, but a bond offers additional protection against a contractor who abandons the job and fails to complete the project for the amount of the contract. Typically, you would be expected to pay the bail fee (1% to 5%) above the bid estimate.
8. When you have completed the architectural / engineering construction documents, you must submit the drawings to various contractors, which you have prequalified using items 1 through 5 above, to obtain cost estimates. Go through each offer and be sure to compare apples to apples. If one bid is way below the other bids, do not select this contractor. This usually (but not always) means that the contractor made a mistake in their bid. If you insist that the lowest bidder is the contractor you want, be sure to go over the bid again to make sure everything on the plans is included. If a written cost estimate with a breakdown is provided to you for your review and the contractor wishes to attach this breakdown to the contract later, do not allow it unless you have not prepared complete drawings for the job. Here is South Florida, we have to prepare complete plans by the architect and 3 disciplines of engineering, mechanical, electrical and structural.
9. Once you have decided on a contractor, obtain an original insurance certificate directly from the insurance company or its representative. Don’t let the contractor give you a copy. Obtaining an original usually ensures that the insurance is still in effect at the time you start your project.
If you follow all the above steps, you should choose a very good contractor for your project.