In case you are an entrepreneur who is thinking about how to locate and recruit a contractor that will help you rebuild or store plans, then we have something for you. Having functioned as a Contractor in the construction business for more than 8 years, I have learned a considerable amount of information about contractual workers and their practices.
Based on these experiences, I will explain the steps to help you as a business owner find a contractor for your business plan. Reading this article will help you to understand where to find contractors, how to select the best contractor that is appropriate for your business, and you will also be able to know what is significant to include in your project contract.
Step 1: Make a list of 4-5 contractors.
You cannot just select one contractor immediately; in fact, you need to make a list of 4-5 best contractors and then evaluate and compare them to find out the best one of all. When making an initial list of contractors, you can consult four main places to get the best and efficient contractors. These places are discussed below:
- Ask Local Business Owners – One of the best ways to find efficient contractors is to seek help from the local business owners. If a trustworthy business owner suggests you some contractor, then you should try to reach that contractor.
- Search for Contractors on the Better Business Bureau Website – The three B can also help locate resources for hiring contractors. This website enables you to compare the contractor to other contractors in the relevant area or field with the comparison tool’s help. Also, on the BBB website, rating about contractors are available.
- Search for Contractors on Angie’s List – This website helps find the best contractor; the reviews on this site are not hidden. This will enable you to see who commented on contractors; you can also see the reviews. You can select the contractor with the best reviews; after selection, if the contractor is not doing the job efficiently, you can complain about him on the complaint review board.
- Check with your local building supervisor – The local building supervisor knows best which contractors are efficient in the job and regularly meet requirements. This information is essential information for hiring a contractor. Call the local building inspector, and he will give you significant information about the contractors.
Step 2: Meet the contractors individually
The second step for hiring a contractor is to meet the enlisted contractors individually and face to face. By meeting the contractor, you can ask questions and can clear the queries you may have in your mind. Phone interviews don’t help you to understand and make a statement about contractors. However, face to face meetings plays a vital role in understanding the contractor.
Step 3: Observe the contractors’ work ethics.
While meeting different contractors, you need to address several things. Given below are some elements to consider when you meet a contractor:
Do they communicate well?
Good communication skills are critical. If you are facing difficulties in communicating with the contractor or the contractor cannot understand what you are saying. You definitely shouldn’t hire a contractor, as doing this will fail the project. Hire only the contractor you are easy to communicate with.
Are they well-informed?
If the contractor is well informed, you will get to know about it by way of communication. Ask a question regarding the project. If the contractor doesn’t face trouble while answering the question, he is well informed and can be hired, and if he cannot answer clearly, the contractor must not be hired.
Do the contractors have liability insurance and workman’s compensation for the employees?
Many contractors you will find through trustworthy sites do have liability insurance. However, it is advised to discuss and check it with the contractors when meeting them face to face.
Step 4: Ask enlisted contractors to provide you with a thorough and detailed estimate
A detailed estimate will help you determine the amount of money and time it will take to complete your project. Each contractor must provide you with a detailed and comprehensive estimate of every aspect of the contract.
Ask your contractors to contain the following items in each of the estimates for each phase of the project:
- Material Cost – Generally around 40%
- Labor Cost – Variable
- Profit Margin – Often around 15-20%
- Other Expenses – Variable
- Timeline – Variable
- Payment Terms – Often 10-50% upfront with several payments due at specific dates or balances due to the project’s completion.
With the help of a detailed estimate, you will be able to understand what to expect of your project, and in case you only want to work on a certain phase, then you will be able to know how much and how long it takes to complete the certain selected phase of the project.
Step 5: Select Your Contractor
After meeting the contractors, evaluating the facts, and having a detailed estimate by each contractor in your hand, you are now able to select a contractor for your project.
Oversee the following facts to select the best contractor:
Which contractor has the best rating?
Check the rating of all the 4-5 listed contractors on valid websites. You can:
- Check out all your contractors with the BBB, Angie’s List, your state’s consumer protection agency, and your local building supervisor to ensure the contractors do not have any complaints, disputes, or violations.
- Ask about the behavior of the contractor by calling the former employers of the contractors.
- If you can still decide about the contractor, you can visit the contractor’s office to find out his behavior.
Which contractor charges you the best amount of money?
The cost the contractor charges is the main thing to consider while hiring a contractor. Given below are some of the facts you need to consider:
The inexpensive option is not always worthy.
There are many cases in which business owners are seen selecting the contractor that charges less amount money. This can fail. Don’t hesitate to spend some extra money on the contractor you find best. Doing this will actually help you to save money in the future.
Only pay more if there is a cause to
As we already discussed, the cheapest is not the best. Well, that doesn’t mean that expensive is the best. Try to find a contractor who charges enough money, and you are comfortable with him. Don’t expect the contractor to provide you with excellent services only if he is charging more. Indeed it is only the experience and communication skills that will help the contractor to provide exceptional services.
Step 6: Draw up a detailed contract.
The next step is to draw a detailed contract, including every aspect and thing discussed and negotiated between the contractor and you as a business owner. It is a legal obligation to draw and sign the contract, so make sure to carefully perform this step. Some of the important things to include in the contract include:
- Payment timetable: Large positions – 10% in advance, 3 booked installments of 25% all through the span of work, last 15% at the fruition of work.
- Proof of obligation protection and specialist’s remuneration installments
- Start date, general timetable, and extended consummation date
- Specific materials and items to be utilized
- A prerequisite that the temporary worker gets lien discharges from all subcontractors and providers. This is to shield you from money-related risk if your temporary worker doesn’t take care of his tabs.
Step 7: Sign a detailed contract.
The last and final step in the hiring process is signing the contract. Make sure to read the contract between the line and sign the contract only if you agree with the terms and conditions given in it.
Picking the correct contractual worker for your employees can be a troublesome task. However, by matching this guide with some examination of your own, you can make an effective and worthy choice.