If you are a business owner, entrepreneur, or even franchisee of an expanding brand, you have likely been tasked with sourcing, qualifying, and ultimately, selecting a general contractor (GC). In the rapid development of this day and age, especially in Florida, contractor options have become fragmented and unpredictable. After the pandemic, labor shortages have reigned supreme, and getting on a reputable contractor’s schedule can present a challenge.
The Key: Partnering, early on, with a construction advisory firm can help alleviate the pressures and stresses of this venture.
This blog will highlight four important considerations in the hiring of a GC.
1. Proper instructions are key
2. Appropriate experience is imperative
3. Do not forget to consider your necessary timelines
4. Hiring a general contractor is just the beginning
1. Proper Instructions Are Key.
The first step in this hiring process is to create a clear and consistent set of instructions for your general contractor. Ultimately, a general contractor’s job is to build what you tell them to build. If your instructions do not line up exactly with your expectations, this is a dilemma that can lead to costly changes further in the project. It is essential to partner with a firm who can offer strategic planning and pre-construction advisory services. This partner will work with your architect, and construction team to create the appropriate plan for your job. Without a clear set of instructions, it is very challenging to qualify a contractor and fully understand their timelines and costs which leaves substantial room for error. Irresponsible contractors will take a poor set of instructions, and use that as an opportunity to change order and increase their profit on the back end. With proper instructions and a partner guarding your best interest you mitigate that risk.
2. Experience Is Imperative.
The next step would be sourcing a GC that specializes in the type of project you are starting. If the contractor you are considering hiring does not have any experience building in similar spaces, or in the jurisdiction of your space, that presents as a major red flag. We are approached frequently by owners who are in a bind with their project because they hired a residential builder for their commercial project. Or better yet, hiring their cousin who remodeled their kitchen to build their coffee shop. Contractors consistently get a bad rap for taking on work outside of their expertise in order to make profit. Aligning with a provider who has a proven network of qualified vendors can help simplify the sourcing process. Not only will this provide a larger list of more qualified options, it will also offer an expert opinion in the final hiring.
3. Consider Your Timeline.
Another important factor to consider when selecting your GC is their timeline and the cost implications that schedule may have on your project. For example, a local general contractor with lower overhead may be able to execute your project in 12 weeks for $300k. A regional contractor, with a larger workforce, can execute the same project in 8 weeks for $320k. The regional firm can also mobilize in 2 weeks, while the local firm needs 6 weeks to get you into their WIP. This is just one arbitrary example of the timeline factor in the selection process. Working with a construction manager who understands (and helped plan) your project will help explore the cost/benefit analysis of different execution strategies. In the end, helping you make the most appropriate hire for your given job requirements.
4. Hiring a GC Is Just The Beginning.
Where many owners are caught off guard is immediately after hiring their GC. They think their responsibilities have ended, but the truth is, the project is just getting started. As discussed earlier, the general contractor’s job is to build spaces to the specifications of your construction plans. Their responsibility does not exceed past general construction. An owner takes on massive accountability during the construction phasing portion in the form of providing information, payments, approvals, and navigation around any unforeseen conditions.
In short, the owner is still the head coach of the team. However, many owners do not have the time or experience necessary to successfully manage the “day to day” tasks of their project. This is where hiring an experienced owner’s representative to lead your project can create a tangible advantage. Specifically, an advisor who offers complete project management, and is involved in the process very early on.
Ultimately, a construction advisor’s expertise and experience will illicit positive results in the hiring, and managing, of a general contractor. Comparing this procedure to other industries – “hiring managers” in other businesses, or even 3rd party recruiters, understand fully the requirements of the job they are hiring for, what to look for in their candidates, and how to best set their new hires up for success. They are often times considered experts in their professions. Why would you run the risk of hiring the wrong GC and costing yourself, or your company, substantial amounts of money and time? The answer is, you should not, and most successful owners and entrepreneurs do not.
Ready to work with a strong construction advisor?
At Hurd Construction, we are construction advisor experts and drive for the strongest results. If you have a project coming up and you need a strong partner or advice on hiring a general contractor, we would love to connect. Leave us a message or give us a call at (866) 231-2477 today.
