Choosing the right contractor
The Insight
While choosing the ideal people for the project should be your primary concern, it's natural that cost will influence who you choose as your contractor.
If a quote appears too good to be true, it most likely is! It’s possibly incorrectly priced, design brief has been misunderstood, or the labour might be inexperienced or insufficient. All these factors are major risks in project completion as they can result in delays, increased cost or project closure.
The cheaper contractor often delivers the project late, with inferior quality, or with hidden costs that increase the overall price. In certain cases, the cheaper contractors are truly delivering all the prerequisites cheaper than their competitors – but what is the true cost of these cheap quotations?
The Impact
Contractors account for the majority of your whole expenditure of the project unless they have involved a subcontractor. Savings here may have a significant impact on your bottom line.
It is highly recommended to compare at least three quotes/contractors before starting a project. A detailed assessment report should be made comparing contractors.
Have they:
· Reviewed all drawings?
· Correctly priced every item and service?
· Met all of specifications mentioned in the contract?
· Adhered to all warranty periods?
· Conformed to the standards and documentation requirements?
· Recognised all the site-specific conditions?
· Given prices including and excluding GST?
· Allowed for travel/disbursements as needed?
· Got appropriate insurances and certificates readily available?
· Agreed to all the financial terms and condition of the contract?
· Got the right number of resources to execute the project by its deadline?
· Not included any unsuitable or unacceptable conditions in their tender?
Identifying a winning contractor involves a deeper process than just assessing price. It should be reviewed against everything the contractor is offering, including experience, social impact, quality, understanding, safety, and more. Reference checks against relevant previous experience are also recommended.
Only when a full understanding of the offer is gained, can one assess if value for money will be achieved. Changing the mindset of projects from being price-driven to value for money driven will benefit both client and contractor.