What To Consider When Sourcing Construction Contractors

What To Consider When Sourcing Construction Contractors

Sourcing the right construction contractors is crucial to the success of your construction project. However, sourcing highly reliable, experienced and trustworthy construction contractors who are available to take on your project isn’t always easy.

In this article, we are going to share our tips on what to consider when sourcing construction contractors.

Determine Which Type Of Construction Procurement You Need

Before you begin your search for construction contractors, you should first determine which procurement method you are going to use. In public sector construction, there tend to be four types of procurement methods:

  • Traditional contracts
  • Design and build contracts
  • Management contracts
  • Contractor-led contracts

Traditional contracts – this method is the most popular within construction as it is low-risk and costs are easier to maintain. It involves appointing a construction contractor to complete the construction projects in line with a pre-agreed design. Crucially, the timeframe and cost are also pre-agreed.

Design and build contracts – This method of procurement is also popular although it requires a lot more communication and collaboration between yourself and the construction contractor. It involves choosing a construction contractor that can also take on the design aspect of the project.

Management contract – With this method, the construction contractor and designer are appointed separately. The construction contractor usually takes the lead on project management and may even begin work before the various design stages are completely finished. Although this speeds up the overall timeframe, it can lead to price uncertainty.

Contractor-led contracts – This method is arguably the most complex. It involves hiring a construction contractor who provides a design team to create concept designs as part of proposals for the tendering process. Usually, multiple construction contractors will put forward proposals and the project is given to the bidder with the best proposal.

Use A Bidding Process

Putting a construction project out to tender is an excellent way to source construction contractors. Each bid that comes in will have all the information you need about the construction contractor, including their experience, qualifications and pricing.

You can then go through each bid and decide which contractor, if any, is most suitable for the project.

Although the tender process can be time-consuming, it does reduce the amount of time spent actively searching for suitable construction contractors.

Check Experience, Reputation And References

When sourcing construction contractors, it is essential to check their experience, reputation and references.

Opt for a construction contractor who has a solid reputation in the industry and can demonstrate their expertise and knowledge through a range of past projects. They should also have a range of reviews and references to support their work.

If possible, opt for a construction contract that has experience in the specific type of construction you need.

Ask About Licensing And Insurance

As well as experience and knowledge, you should also consider licensing and insurance when sourcing a construction contractor.

Construction licensing requirements vary from location to location. Hiring a local construction contractor may be best as they will be familiar with local licensing requirements and regulations.

You should also confirm that the contractor has all relevant insurance and that each team member involved in the project is certified and insured. This will protect you from potential liabilities.

Don’t Overlook Communication

Good communication is vital in construction projects. When sourcing construction contractors, consider each contractor’s level of communication during initial discussions and meetings.

Effective communication is clear, open and transparent. To handle the complexities of a construction project, your contractor should be skilled in effective communication.

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