Big or small construction project. A historic renovation in the heart of the old town or a new shopping center. No matter what type of construction project you’re undertaking, you want to be sure you’ve chosen the right contractor for the job. But how do you know your contractor is doing a good job?

A contractor’s success or failure is often closely related to you: how effectively you complete your recruitment due diligence, how clearly you set your expectations, and how you and your contractor communicate with each other during all phases of construction.

Preparation and Selection

Before you begin your search for a contractor, you should clearly outline the responsibilities for which you will hold your contractor accountable. Those skills should be included in the contract between you/your company and the contractor.

Next, you need to do your due diligence.

• Ask friends and colleagues who have worked on construction projects similar to yours for contractor recommendations. Ask these questions:

o How did the contractor manage budget and materials?

o Was the project done on time or ahead of time? If it was out of hours, why?

o Was the work performed in accordance with the agreed terms?

o Would your source work with that contractor again?

If your reference did well on each of those points, he or she may also be a good contractor on your project.

• Check ALL references!

get it in writing

All good business relationships should begin with “get it in writing!”

• Each prospective contractor must submit a written offer. Red flag: nothing in writing.

• You and your contractor must have a signed contract. Include details about the budget, scope of work, materials, schedule, and specific responsibilities of the contractor. Red flag: the contractor who does not sign a contract.

• Your contractor must take notes during every walkthrough and meeting. Red flag: “I will remember…”

At work

Here are some important clues at work that your contractor is doing a good job:

• Communication – You and your contractor communicate frequently and clearly according to agreed-upon methods (text, fax, email, phone). Red Flags: Doesn’t return calls, Difficult to communicate with, Provides limited responses to questions, Communicates poorly with staff.

• Subcontractors: Contractor hires quality subcontractors with verifiable references. Red flags: conflicts at work, petty theft, substance abuse at work, wasting time, etc.

• Safety: The contractor diligently observes safety practices and insists that all workers comply with safety regulations. Red flags: avoidable injuries, safety issues.

• At the job site – The contractor is working at the job site most of the time. The construction team is busy during all working hours of the week. Red flags: Contractor is infrequently on site, workers have too much downtime.

• Security: appropriate security measures are observed at all times. Red Flags: Unsecured or missing equipment and materials, site is poorly secured during non-business hours, unauthorized persons are on site.

Calendar and budget

Ideally, every construction project is completed within budget and on schedule. Realistically, there may be some unexpected schedule disruptions and costs.

Ask yourself a few final questions:

• Is my contractor providing me with accurate and up-to-date information on all aspects of the work and construction progress?

• Are you managing resources, budget, personnel, and materials effectively and appropriately?

• Do crew members work in harmony with each other?

• Are my goals for this project being met?

When you can answer yes to these questions, chances are your contractor is doing a great job for you. Congratulations on your choice and on your new project!