If you’ve been hoping to take advantage of Florida’s commercial construction boom, doing your due diligence is paramount to avoid unnecessary stress and significant liability. Here are some of the most common red flags for commercial construction projects to help you stay informed.
1. Poor or Dishonest Communication
Pay attention to how your commercial construction firm communicates from the earliest stage of your project. Are they clear? Do they respond to your questions and concerns in a timely way?
Does a contractor or firm seem to avoid you when you have questions about fees, workmanship, and other project concerns? If your communication has been unclear or inconsistent, or if they seem to be feeding you inaccurate information, this isn’t a project partner to continue with.
2. Lapsed Licensing or Insurance
Make sure they are currently bonded, licensed, and insured, and in good standing with their regulatory bodies. Any lapses here likely mean you’re on the hook for numerous quality and compliance issues.
3. Suspiciously Low Bids
If a project bid is so low it seems too good to be true, it probably is. This tactic is a common one for contractors who want to “bait and switch” a company by getting them to agree to a low initial bid, only to be hit with a bunch of additional costs to get the project completed. Make sure you receive a detailed, complete bid from any commercial construction company you interview
4. High Upfront Costs
This is typically a red flag because most commercial construction projects have a fee schedule that includes payment at the end of a project. Pay close attention to the fee schedule as presented in your initial consultation and estimate/bid process. Make sure you are not paying the majority of costs upfront. Otherwise, you could be left with a large financial deficit and an incomplete project. That’s not a situation anyone wants to be in.
5. Poorly Written Contract/Absence of Contract
Commercial construction projects are too great an investment not to protect yourself and your company. Get your legal department a seat at the table for any conversations with a commercial construction company. Have them review any contracts and agreements, and alert you to any issues or concerns, before signing and proceeding with any projects. Never work with a company on the basis of a good feeling and a firm handshake. Make sure you’re protected from the start of the working relationship.
6. Poor Project Management
Yes, you want someone who can build well, safely, and up to code. But your project demands more for excellent results. You need a firm with proven construction project management experience that can keep you oriented and informed at every phase of your commercial construction project. Anything less puts you at risk of stagnation, frustration, and potential project failure.
7. Inadequate or Poor Professional References
When it comes to digging deeper to make sure you’re working with the right commercial construction company, you have to do more than check Google. Ask each contractor you work with for professional references, and check them thoroughly. Ask for their professional affiliations, and check with those groups. Is that contractor in good standing with them and with regulatory bodies? Do they have any outstanding complaints or unresolved legal issues related to current or previous commercial building projects?
Start Your Project with Confidence
For decades, Farrar Construction Services has been a trusted commercial construction partner for businesses looking to raise their profile and investors looking to grow their portfolio. We pride ourselves on transparent communication, adept project management, and workmanship that meets the highest industry standards for safety and excellence. Don’t risk it when it comes to your commercial building project. Book a consultation with us and get your questions answered promptly and thoroughly.