| Evaluating the 4P's of a
construction project 1. Problems ... What
are the problems that are causing the need for construction?
2. Products ... What products and procedures solves
those problems?
3. People ... Who is the contractor to install the
products and how do you qualify them?
4. Price ... How do you determine if the price quoted is
fair and competitive?
The Certified Contractors Network suggests that you evaluate
your contractor as carefully as you would choose your doctor or
lawyer. You will want to select a contractor who can perform
the work to your expectations and satisfaction. The critical
success factor in any construction project, is the contractor.
A qualified, professional, experienced contractor knows what
results are required for owner satisfaction, as well as, what
will lead to dissatisfaction down the road.
You will need to evaluate the quality and completeness of the
proposal before you award the bid. Does the proposal include
everything you need and discussed with the contractor? Is the
price in-line with the value being delivered? Be forewarned
about the low-price contractor. Carefully determine if the
low-bid contractor is providing a fair value for that low
price. Studies clearly show that most dissatisfaction involves
the low-bid contractor.
Most dissatisfaction involves an owner who did not fully know
what they selected or committed themselves to. A professional
contractor will take pride in his work and will have no problem
discussing your options, his previous experience, and his list
of satisfied customers. Allow yourself a minimum of 1 hour
to sit down with each contractor. Both of you need to explore
the problems, products, and prices. You
will be surprised at how many options and questions can be
discussed with a professional contractor.
A professional contractor will have no problem working with you
to answer these questions so that you can proceed with trust and
confidence.
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1. |
What is the address and full name of the
company? |
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Automatically reject any
contractor without a permanent place of business. If a
contractor is not permanently established, how can you be
confident he will complete the work? How can you be sure he
will be in business if the work needs service in the
future? What do you do if the project fails and you are
financially harmed or the contractor is not financially
responsible? Don’t be swayed by a personable contractor or
his attractive low price. It is not worth the risk. Select
only a contractor that is financially committed to the
business. Select someone you can call if a problem arises
in the future. A professional contractor will have no
problem giving you a tour of the facilities and providing
whatever financial proof is required for your peace of
mind. Don’t be timid about asking. The professional
respects these questions and knows that time is being well
spent with an intelligent buyer.
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2. |
Does the company carry insurance and is the
coverage adequate? |
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Automatically reject any
contractor without proper and adequate insurance. This is
the second most important question. Homeowners have been
financially harmed by uninsured or inadequately insured
contractors. A contractor should provide you with a
Certificate of Insurance for Comprehensive Liability,
Worker’s Compensation, and Completed Operations Insurance
that protects you in the event of an accident or provides
financial coverage for a failed project. The insurance
should be adequate to cover the property. Contractors may
also carry other forms of insurance, such as health
insurance and vehicle insurance. Do not be confused by
these policies. Do not allow the contractor to pass them
off as his proof of “contractors” insurance.
Be aware that homeowners are sued for
injuries on their property. Most owner insurance policies
exclude outside contractors, so it is critical to make sure
there is proper and adequate coverage. Don’t be fooled by
the contractor who says he doesn’t need insurance because he
is self-employed. A tell-tale pattern on an uninsured or
underinsured contractor is the low-bid. Be very wary of the
low-bid. Also be wary of multiple low bids. You may have
several uninsured contractors bidding the project. The
contractor working without insurance, saves between 20% and
100% of his labor costs by operating without insurance and
can give you a lower price, but he puts you at risk.
Ask contractors about their Safety Plan,
which is required by OSHA. Professional contractors will
readily provide you with a Safety Plan so you are
protected. The Safely Plan is another tell-tale sign of
professionalism or the lack there of same.
Be aware of uninsured contractors. Roofers who do not
carry insurance will most likely be cheaper to hire as they
do not have the large insurance premiums to pay.
Workers' compensation premiums can increase wage costs from
about 20% to as much as 100%, depending on the state.
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3. |
Is the company a licensed contractor? Is the
contractor a member of a trade association and in good
standing? |
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Automatically reject any
contractor who is not licensed. However, don’t be fooled by
a license either. Generally the requirements are minimal
and the law is generally poorly enforced. A better test is
to question the contractors’ commitment to his trade. Ask
to see certificates of membership and ask them if they
continue their education.
Several roofing manufacturers offer a variety
of programs to professional contractors that establish their
credentials as a knowledgeable roofing company.
Homeowners can view a contractor's credentials as another
indicator of their degree of knowledge, professionalism, and
dedication to the roofing trade. |
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4. |
How long has the contractor been in business? |
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The more experienced the better!
Under five years is often a tell-tale sign of an unstable
business. Examine new business with extra care before
awarding them the job.
Check references carefully. A
professional contractor will gladly provide references and
want you to speak with his past customers. Automatically
reject any contractor who can not provide a reference list
of customers.
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5. |
What is the contractor’s track record for
handling complaints? |
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Automatically reject a contractor
who says that they have never had a complaint. The best of
contractors find themselves in disputes for one reason or
another. Ask the contractor for a name of a problem account
and an explanation as to how they rectified the complaint.
The question is not whether they have had disputes, every
good business has, but great businesses know how to handle
them.
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6. |
What is the company’s workmanship warranty? |
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Typically, contractor workmanship
warranties are for one year or more. Longer warranties are
not more valuable than shorter ones. The length of the
warranty is less important than the intent and ability of
the contractor to stand behind his warranty.
The long-term warranty is
provided by the manufacturer. It is critical to be assured
that the product will be installed according to the
manufacturer specifications, or the warranty is no good,
regardless of the document you were provided. Call the
manufacturer to be sure that the contractor is still in good
standing.
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7. |
Specific Questions for Specific Projects |
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Compliance with local
ordinances-Question the contractor about what is required.
Contact the local building department for verification.
Question if the permit is included in the cost and who is
responsible for obtaining the permit.
Product selection-Make sure the
proposal includes a specific reference to the product and
color you have chosen. Your proposal will be your proof of
purchase in later years.
Manufacturer warranty
specifications-If the project is to be warranted by a
manufacturer, confirm that the agreement states that the
work will conform to the manufacturer specifications.
Clean-up call for daily clean-up
to help minimize safety issues or exposure.
Payment terms-Schedule, terms and
method of payment should be clearly detailed in that
agreement. Establish an agreement regarding retainage if a
certain portion of work is left incomplete or there is a
“punch list”.
Preliminary inspection- Plan to
meet with the job foreman who will be responsible for you
satisfaction. Make sure that he fully understands the
specifications and promises made by his company. Establish
the condition of the property before the work starts in the
event there is property damage during construction.
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