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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.