Planning a commercial construction project? Who you choose to work with has a significant influence on the outcome. Choosing the wrong company can mean the difference between a project that drives revenue and one that quickly drains your budget.
A lack of credentials, no management processes, and poor communication are all red flags to look for when evaluating companies to work with.
At Lonestar General Commercial Contracting, our commercial construction company serves businesses in Texas. Contact us today to request a quote for your project.
5 Red Flags to Avoid When Hiring for Commercial Construction
Commercial construction projects are high-stakes, involving strict deadlines and tight budgets. Every project also has complex building codes and legal requirements, and requires significant capital investment.
To make sure construction goes smoothly, it’s essential to work with the right contractor. Five red flags to look for when you’re hiring a commercial construction company are:
1. Lack of Credentials
Reputable contractors should be able to provide documents showing that they are legally and financially certified to perform the job. Commercial construction contractors need to have proof of general liability insurance and workers’ compensation, as well as state-specific licensing.
If a contractor can’t verify these credentials, then it’s best to avoid working with them. Otherwise, you will be liable as the business owner for any injuries or property damage that occurs during construction.
2. Low Bids
If a contractor places a significantly lower bid on your project compared to other companies, you might think you’re getting a good deal. However, if a lower price looks too good to be true, it’s likely a red flag.
Lowball bids often come with surprises, such as poor-quality materials, inexperienced labor, or last-minute change orders.
These issues can result in costly delays, or in the worst case, having to re-do the project.
At Lonestar Commercial General Contracting, we provide detailed, honest estimates upfront. These estimates reflect the true cost of our quality craftsmanship. All fees are shown upfront, so you know exactly what to expect.
3. Inconsistent Communication
Communication is vital for any commercial construction project. Pay attention to how a contractor communicates during the bidding process, as it often reflects how they communicate during the project.
It’s a red flag if they:
- Take days to return your calls
- Give vague answers
- Don’t have a formal system for giving you project updates
The best commercial contractors are constantly communicating between architects, subcontractors, and you as the owner.
At Lonestar Commercial General Contracting, we use a cloud-based client portal to give you access to real-time project updates.
4. Demands for Upfront Payment
Usually, projects begin with a deposit for materials. However, if a contractor demands that you pay the majority of the project before work even begins, it’s a red flag.
Avoid companies that ask for a down payment of 50% or more, or ones that insist on cash-only payments. These are usually signs that the company is in poor financial health.
A stable commercial builder has enough working capital to easily manage projects. It’s common to use a milestone-based payment schedule. That way, you only pay once real progress is made.
5. No Management Process
Commercial construction requires formalized processes for project management. It’s crucial for contractors to have these processes documented, so you understand exactly what to expect.
If there’s no clear timeline or no written processes for managing subcontractors, then it’s best to avoid working with that company.
Having a structured workflow ensures that timelines and budgets stay on track. It’s also crucial for documenting every phase of a project for your investors.
Choose Lonestar for Your Commercial Construction Project
If you need help with a commercial construction project in North Texas, consider our team at Lonestar General Commercial Contracting. We work with businesses in the greater Frisco area, including:
- Allen
- Carrollton
- Flower Mound
- Frisco
- Garland
- Irving
- McKinney
- Plano
- Richardson
- Rowlett
Our team uses technology-integrated solutions to ensure every phase of construction proceeds according to schedule. We also provide daily updates, progress reports and photos, and a direct communication line with one of our team members for questions or concerns.
Want to see if we’re the right fit for your project? Call (972) 838-1444 or contact us online today to learn more about our services or request a quote.