Mistake #4: Hiring a General Contractor Based on Cost

In the world of construction, if a General Contractor is quite a bit lower than the competitors, there is usually a good reason why.

You should expect that "low cost bidders" will attempt to recoup their initial losses in different ways, such as substandard materials, cheap/unskilled labor and inferior craftsmanship. 

Some GC's will bid artificially low to get the business by intentionally excluding items.  Once they win the business and work begins, they will add those items back into the project at a premium through the change order process.  As a result, unsuspecting clients end up paying a lot more than they bargained for.

To help weed out the substandard General Contractors:

• Treat the GC selection process like you're hiring an employee. 
• When you meet in person, are they on time and are they prepared?
• Do they invest in your success from the beginning?
• Check out their website and social media sites.  Does their digital presence foster confidence in their ability to meet your needs? 
• Be sure to look for client reviews*.  Poor reviews and/or a lack of reviews should be a red flag.



• Communication is critical in managing the ups and downs of commercial construction.  Consider how well the GC communicates with you. 
• Are they easy to reach? 
• Are their responses  prompt, courteous, and on point? 
• A quality GC will seek to understand your business needs by asking pertinent questions. 
• Think about whether or not they brought any value to your meetings and conversations. 

• Don’t shy away from asking probing questions. A Lot of time and money is riding on this working relationship. 
• Determine how the GC approaches conflict resolution. 
• Will they agree to put everything in writing? 
•  All reputable GC’s will be happy to provide multiple, current references. 
• Take the opportunity to ask previous customers how they performed and how problems were handled and resolved.

After conducting the more technical due diligence above, ask yourself if you feel comfortable and think you will enjoy working with them.  Trust your instincts and past experience. If there are warning signs, address them. It is imperative you are confident in the capabilities and trustworthiness of your GC.

To sum up the fourth mistake to avoid when buying or leasing a commercial property. The lowest price general contractor usually doesn’t save you money in the long run. So, do your research and be thorough. Look at previous work in person, not just pictures on a cell phone.  Always check recent references and search for reviews. 

Follow these insights and you should find the quality GC you need to make your construction project a success. 

* A note about reviews to keep in mind: the Experts say that unhappy customers are 3-times MORE LIKELY to post a negative review than a happy customer.