| What
are three things a general contracting firm should do to keep
a project within Budget?
1. Value Engineering/Constructability
Reviews - You want to know their ability to review plans
and specifications from a contractor's viewpoint and offer
alternative suggestions that result in time or money savings
without sacrificing quality or program. You want a contractor
that has solid experience and examples of savings for the
owners through the contractor's value engineering suggestions
and/or constructability reviews.
2. History and Philosophy of
Change Order Management - Ask how many change orders, as
a percent of budget, are generated on their typical project.
Find out whether they are owner-generated or contractor-generated.
Ask how the contractor will work with you if you wish to
make changes. You want a firm that can be flexible with
your desires and provide honest feedback as to how it will
impact your budget and schedule.
3. Budget Controls - No one
wants to find surprises that negatively impact their budget
when they're three months into the project. You want a contractor
who closely monitors subcontractor costs against original
budget projections. A good answer would also be that the
firm would properly staff a project with at least a full-time
project manager and project superintendent to ensure ample
supervision.
How can I ensure that I
will get my project on time?
Assembling the construction
team early in the project is one key means of ensuring a
timely project. This allows the contractor to identify items
that might delay the project early enough (material and
equipment deliveries, for instance) to resolve them before
they result in delays. Hiring a qualified contractor and
subcontractors who have the ability and manpower to meet
schedule requirements is another key consideration. The
contractor should be able to identify other factors who
might impact the schedule as well as identify subcontractors
and suppliers that have the ability to perform on a specific
project. Checking a contractor's past history is a good
indication of ability to meet timeframes. Checking references
and talking with previous owners the contractor has worked
with should give a good indication of his or her ability
to meet schedules. Finally, establishing a reasonable timeframe
at the outset of a project enhances the likelihood that
the schedule will be met.
How do I ensure that I will
get a project that is well built?
Your contractor should select
subcontractors by setting reasonable screening criteria
while looking for the lowest bid. This involves performing
background checks using good credit references, requiring
proof that all subcontractors can bond and finance their
own work, and talking to each subcontractor to verify that
they have the necessary materials and skills to do the job.
All these measures take time, but they are critical to ensure
your contractor is using subs who will not go out of business
during the building of your facility. It also ensures that
you are getting the best subs for the best price to build
a facility that will stand the test of time.
In addition, a company should
staff its job site with a full-time project superintendent
to continually monitor the subcontractor's workmanship.
You should be given the names and experience of the project
manager and the project superintendent. A job site with
only a part-time staff runs a great risk of having poor
quality workmanship. A senior staff member, experienced
in quality control should also visit the job site regularly.
These factors combined ensure that the promise of quality
is carried throughout the project
What's your experience with
various types of construction delivery systems?
A contractor may never have
had experience in the newer delivery systems such as Construction
Manager At-Risk or Design/Build. The benefits for
each process are very positive for the owner since the owner
becomes involved in all issues and reviews any and all bids,
plans, etc... that they choose. Because of this vast amount
of paperwork needed to keep everyone updated, a contractor
needs to supply a knowledgeable, competent staff who maintains
the most updated documents in an efficient manner.
Why is general contractor's
bonding capacity important?
A larger bonding capacity is
indicative of financial strength, history of performance
and an efficiently run business. A large bonding capacity
assures you that a surety believes the contractor's financial
status, reputation and history of on-time completions is
very strong and reliable. However, bonding capacities should
be compared amongst contractors of similar size. There are
many smaller contractors with lower bonding limits that
still provide quality construction.
Why is a general contractors
safety record important?
A reliable indication of a
contractor's safety record is to check their safety modification
factor rating. This rating is determined by insurance companies
and is based on past Worker's Compensation claims. The average
rating is 1.00. Ratings below this line indicate a better
than average safety record.
In addition, the contractor
should have an established, written safety program that
meets or exceeds OSHA requirements and hold regular safety
meetings on each job site. A good contractor has an excellent
safety record and few safety violations.
Where can I find information
regarding the Michigan Builders License Course?
You can check out http://www.aapxx.com/
for information on becoming a registered building contractor.
How can I obtain information
about building codes and authorities?
You can go to this
page for information regarding various building codes.
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