Hiring a GC based on cost

mistakes-to-avoid-buying-leasing-4-of-5

Hiring a GC based on cost

Mistake 4 - Hiring a GC based on cost

Hiring a General Contractor based on cost is a risky proposition.  It seems that we have all purchased the low-cost item simply because it was the cheapest and later regretted that decision.

In the world of construction, if a GC is quite a bit lower than the competitors, there is usually a good reason.  You should expect that he will make up the difference in different ways, like substandard materials, cheap/unskilled labor and inferior craftsmanship, and through the change order process.

To help weed out the substandard General Contractors, there are a number of things you can do:

  • Treat the process like you're hiring an employee
    • What does their website tell you? Read it like a resume'.  Does it foster confidence in their ability to meet your needs?
    • Did they show up on time and were they prepared?
  • How well does the GC communicate with you?
    • Are they easy to reach and are they prompt, courteous, and on point with their responses?
    • Did they seek to understand your business needs?
    • Did they bring any value to your meetings/conversations?
  • Ask probing questions
    • How do they approach conflict resolution?
    • Will they agree to put everything in writing?
    • Will they provide multiple references?
  • Do you feel you will enjoy working with them
    • Are there any warning signs?
    • Do they seem trustworthy?
    • Trust your instincts.
  • Do your research
    • Look at previous work, not just pictures on a cell phone.
    • Always check recent references.
    • Search for reviews.

Note - the Experts say unhappy customers are 3 times MORE LIKELY to post a review than a happy customer.