How to Evaluate a General Contractor Before You Hire One

Why Contractor Selection Is a Due Diligence Process

Selecting a general contractor is one of the highest-leverage decisions an owner makes on a commercial project. The contractor controls schedule, quality, cost management, subcontractor performance, and project closeout. A misaligned contractor selection affects every one of those outcomes—and those problems compound over the life of the project.

Most owners evaluate contractors on price. Price is a factor. It is not a reliable predictor of project outcome. The contractors who win on price and underperform on execution are the most expensive contractors an owner will ever hire.

Qualification Criteria That Actually Matter

• —Licensing and insurance: Active general contractor license in the state of work, current general liability and workers' compensation certificates, and bonding capacity appropriate to the project scope. These are minimum requirements, not differentiators.
• —Directly relevant project experience: Experience with the specific project type—not just construction generally. A contractor with strong residential experience may not have the trade relationships, system knowledge, or documentation discipline for commercial work.
• —Project team assignment: Who will actually be assigned to your project? The principal or senior leader who presents in the interview is frequently not the project manager or superintendent who runs the job. Ask for the specific names and review their experience directly.
• —References from comparable projects: References should be from projects of similar scope, size, and delivery type—completed in the last three years. Ask specifically about schedule performance, change order management, and closeout documentation quality.
• —Subcontractor relationships: A GC's subcontractor network is a competitive differentiator. Established relationships with qualified, local trade partners produce better pricing, better schedule reliability, and better accountability than a GC who bids out to whoever responds.

Preconstruction Capability

The quality of a contractor's preconstruction process is one of the strongest predictors of project outcome. A contractor who can produce a detailed, trade-validated budget, a logic-sequenced schedule, a value engineering analysis, and a permit strategy before construction begins is a different class of contractor than one who produces a single-page estimate.

Ask every contractor you evaluate how they develop a GMP. Ask to see a sample preconstruction deliverable package. Ask who does the estimating—in-house or outsourced. The answers reveal a great deal about how they will manage your project.

• —Read: What Is Preconstruction Planning →

Evaluating Cost Proposals

When comparing contractor proposals, the number is only one input. The scope behind the number is what determines whether the comparison is valid.

• —Is the proposal a lump sum, GMP, or cost-plus structure? Each carries different risk allocation.
• —Is there a detailed exclusion log? What is not included in this number?
• —How are allowances defined and documented?
• —What contingency does the contractor carry and under what circumstances can they access it?
• —What is the change order authorization process?

• —Read: How to Evaluate a Construction Bid →

Closeout and Post-Construction Considerations

A contractor's closeout process is often the last thing owners think to evaluate—and the first thing they wish they had asked about. Professional closeout includes a formal punch process, as-built drawing collection, warranty documentation, O&M manuals, and a written turnover package.

The quality of that turnover package directly affects how the building is maintained after occupancy. For owners managing assets with a facility management program, incomplete closeout documentation creates a gap between what was built and what the maintenance team knows about the building's systems.

For assets that will be managed by a structured facility maintenance platform post-construction, Ark Facility Solutions provides the ongoing operations and maintenance continuity within the Megas Holdings platform.

Iron Sparrow Construction is based in North Carolina and takes on commercial and residential construction projects across the United States. Contact our team to discuss your project.