Homeowners Guide to Selecting a Building Construction Contractor

BUSTAMANTE STAFF • May 12, 2020

Tips to Qualify the Right Construction Firm

Tips to Qualify the Right Construction Firm

Choosing the right contractor for your new home construction or remodel project is a crucial decision and requires careful thought. The challenge is finding a trustworthy construction firm who can accomplish the task within the given time, at an acceptable cost and with minimal trouble. Assume that there will be problems along the way and select a person whom you feel will work cooperatively with you to find the best solutions.


You need to consider a number of things before selecting or hiring a contractor. When you interview firms in your area, ensure that the construction team understands your requirements, the scope of the project, the architectural design specifications and that they will get the job done appropriately and well within your budget. This is often easier said than done. The following are a few tips to help you find the right construction firm for your building project:

Get Referrals

  • Start your list of potential contractors from referrals. Word-of-mouth rumblings are a great way to gain insights about your prospective construction company.
  • Ask your architect or designer for recommendations of potential contractors.
  •  Decide on a list of criteria including experience, qualifications, referrals, cost, time, insurance, an active contractor’s license, payment schedules and attention to environmental factors.

Collect Information

  • QUOTES - Solicit at least three quotes from contractors qualified to do the job. Selecting the right contractor also relies on you providing adequate time and information for an accurate bid. A good contractor will give you accurate pricing and an honest timeframe right from the beginning.
  • REQUIREMENTS - You must also have a clear understanding of what will be included in the bid and all must be clearly mentioned in the contract. Ensure that you provide your potential contractor with detailed plans and include all tasks, from preparation to cleanup, that they need to perform to fulfill their obligations.
  • REFERENCES - Ask for 3-4 references including past clients, architects and subcontractors they have worked with, and the local legislature. Dig for information about them regarding the constructor’s competency, which you can confirm while the quote is prepared. 
  • COMMUNICATION - Effective communication from the contractor to the client is essential. Many contractors work through their cell phone and only answer back after work hours. Although this may be OK for smaller contractors, you will be better off with contracting companies that have administration staff.
  • MUNICIPALITY -Ask the contractor if they worked in the municipality you reside in; not all building code officials are the same and some have their own criteria and procedures that are burdensome to the consumer.

Confirm the Details

  • LICENSING - Check with your state licensing agency that the contractor has an active license and that they have completed all the licensing requirements for the work you need done. 
  • SAFETY - Check the safety procedures of the company. Safety is another prime concern and your construction team must have a proper OSHA safety plan in place.
  • INSURANCE - Check that the builder is covered with valid public liability and property damage insurance as well as worker’s compensation and that any subcontractors on the building site are also covered.  Certificates of Insurance must be provided and the owner is the holder and additionally insured.
  • CREDIT CHECKS – Make sure the contractor has good credit so they don’t walk away with your money. A good and responsible contractor will have good credit.
  • COMPLAINTS - Check with the Better Business Bureau or other credible sources to see if any complaints have been lodged by previous clients.

Evaluate the Quotes

Allow two to three weeks for quotes to be compiled. Don’t be surprised if you get three quotes with disparate values. Although costs are a consideration, the lowest price may not be the best option. Discuss the details of each quote with the contractors to ensure that they have covered all the bases and that there will be no surprise hidden costs down the road because they were unaware of a particular task you wanted them to do. Consider the time frame and ask your contractor to outline their building plan and contingency strategies should delays occur. It’s also important to ask the contractor how long the quote is valid.

Make Your Decision

Finding the right construction firm can be a daunting task. By being diligent when selecting a construction company, you can avoid major arguments, hiccups and headaches later. Choose a company that fits your style and personality. Good contractors who are committed to their projects and clients remain transparent and provide the highest quality available, in terms of both experience and end results. Companies that have stood the test of time have the reputation of being honest, fair and upfront with their abilities, past experience and pricing.  

Written Contracts Are Paramount

Not only should the contract include protections for the homeowner like indemnify clauses, it should also include provisions for payments based on progress. Any good contractor will ask for a deposit, but the deposit should be enough for contractor supplies and materials - nothing more.  We suggest retaining a percentage until 30 days after substantial completion, which is when a “punch list” inspection takes place. Also include a minimum 1 year warranty provision, which will be agreeable to the contractor and obtain all manufacturers warranties. Lastly, keeping adequate records of change orders, signed by both parties, will keep things running smoothly.  Use mediation or arbitration to settle disputes.  Contact your attorney for additional safeguards. 

Professional Structural Inspection & Defect Evaluation

For many reasons, the expectations of a homeowner may not meet the expectations of a builder. The critical path of constructing a new home often goes awry, so the delivered home may not be completed to your expectations. If you are building a new home, we can bring the eyes and expertise to inspect the structure of your project to insure that the property is being built per the plans. BUSTAMANTE ENGINEERS approaches each and every situation in a particular manner, bringing forth many decades of engineering experience to assist the homeowner and resolve their issues. Often our engineers find issues that would be covered up and only surface as larger construction defects in the future.   

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