Monday, September 22, 2014

Tips in Finding a Contractor

If you prefer to find a contractor by yourself, please read on to have a heads up on finding a good contractor;

Steps in finding a good contractor:

1. Get a list of potential Contractors. If you are a first timer, at least 3 - 5 contractors should be in your initial list. But it is recommended that you keep as many contacts as you can so that you can have better options and add other candidates in case one contractor fails to meet your expectations.

Don't engage with them yet. Just get their contact and basic information.


Ways to find a Construction Contractor:
 1. Relatives and Friends' Recommendations
 2. On-line/Internet
 3. Yellow Pages
 4. Newspapers and Magazines
 5. Ad posters, Billboards, etc.
 6. Scout for ongoing construction projects
 7. Ask for your Designer's recommendations
 8. Product and Service Expositions

2. Gather information about the contractors. You can try searching for their website or online protfolio. You can also join forums and ask about any feedback about them. You can make a call to inquire and ask for their company profile. Many construction firms nowadays have online company profile.

Information to take note:
1. PCAB Classification. This is to ensure that the contractor is qualified to do construction works for your project.

2. Years in Service. Of course, the longer they have been in the industry, the more experience they have. But be sure to check the time line of their projects. Having only 1 project in 1 year is ok. But having no project in a year or two is an issue you should clarify with the contractor.

3. Finished Projects. Aside from reading the list of their accomplished projects, you can also ask about brief history of some of their notable projects so you can have an overview on how they handle projects and how they dealt with their previous clients.

4. Office. Knowing the location of their office is not enough. Go and visit. Investigate on how long they have been taking office in there. If they have been there for so long, about 10 years above, they might be doing good business then. Also proximity of their office to your project is an advantage.

5. Equipment and Material Warehouse. If possible, try to visit their warehouse also. A good contractor should have an organized warehouse. This is also a proof that they have the equipment, machinery and resources to finish quality projects.

6. Permits and Licenses. Although this should be there as expected, there's no harm in having a double check including the validity of the professional license of the engineers and architects in the firm.

7. Client and Project Reference. You can ask this at the early stage if you are seriously considering the contractor. But don't expect too much because arranging a project visit is not that easy but should not be impossible. In respect to their previous client, the contractor will normally seek for permission first before you go for the inspection. If this pushed through, chances are, you've found a good contractor. The fact that you have been allowed to visit their accomplished project only proves that they have established a good working relationship with their previous client, and possibly to you also in the future.

Remember, don't directly contact their previous clients and ask for feedback without asking the contractor first. This can be considered unethical and/or unfair collection of opinion. You'll never know. It might be that the client was the bad guy, and the cause of the project failure. If the contractor is in good faith, it would not be afraid to let you meet its previous clients.

We will continue with the Selection and Dealing with Contractors in the next articles. Thank you for reading.

Thursday, September 18, 2014

Contractor with Construction Manager

Ideally in this setup, the OWNER seek first the services of an Architect or Architectural firm. After the plans are prepared, the Architect invites contractor to bid for the project. At least 3 contractors should participate in the bidding. If the OWNER knows a capable contractor, he can also invite him to join the bidding. It is important that the Architect should be the one conducting the bidding because he can set bidding guides so that every item in the bid breakdown can be compared apple to apple during evaluation. Also, if the contractors has questions regarding the design, they can directly ask the architect. The architect then can issue bid bulletins to answer all design related questions.

While the bidding takes place, the OWNER can then hire a Construction Manager. It is recommended that the CM is not related in anyway with neither the Architect nor the Contractor. This is to ensure a good check and balance during construction.

After the bidding, the winning contractor will then be engaged directly to the OWNER. Although the contractor will be the one preparing the contract agreement, it is still to be checked and evaluated by the Construction Manager. All provisions, terms and conditions will be reviewed by the CM. You should not ask directly your contractor of anything about the contract agreement because it might give you a bias answer. If you have doubts and questions, it is your CM that you should consult. The CM and the Contractor may have a language that you might not understand. But you can be assured that the CM is doing his best to make everything in your favor. Otherwise, his reputation of being a good Construction Manager will be compromised.

Again, the advantages and disadvantages are actually almost the same with the previous setups. The only difference of this setup is having a very good check and balance because these 3 Construction Professionals are directly engaged with you. The Architect will ensure that his designs and details are complete, accurate and on time because the CM and the Contractor will be checking these before the contractor executes the plans. The Contractor will less likely attempt to perform poorly or abuse you because they are being monitored and checked by the CM. The CM on the other hand must also do well because the project's outcome mostly depend on him. If the project is done accordingly and finished on time, the credit goes to the CM. CM firms are always after this, because of client reference. In short, because each of them are afraid of having an impression of being incompetent, they will have to perform at their best. And the one that will benefit from this is the OWNER.