Nowadays most clients are facing to the common problem of selecting a suitable contractor to build or renovate their house. In this society, some contractors are cheating , do not complete the agreed works and higher defects of their works are some of the ways of corruption in the entire construction industry. Public fear is reasonable, because they don't want to   donate their valuable money to these types of cheaters. 

If you select a Housing Construction company they will keep 15% - 25% Overhead and profit. Most probably they undertake whole construction activities with material rates and may be given a 20-25 years warranty for the structure. But small scale of contractors, like labor contractors keeps 5% -10% for their labour rates, but client has to supply materials. If you have enough money and if you are busy with your works, it is preferred to select a construction company.

If you want to utilize your valuable money well and have enough time to dedicate to the construction work, labour contractor will be the most important factor to you.

Selecting small or large-scale contractor is not a problem for you, but you need to consider major key areas before the selection. 

Follow the following tricks, it will help you to save your money and find a good contractor.

  • Ø  Select more than 3 contractors and get the quotations from them. 
  • Ø  Check each contractor’s quotation and make a comparison.
  • Ø  Separately evaluate low rates and high rates, Ask them to negotiate with high rates and request them to apply discounts.
  • Ø  Make sure all the critical construction works are included in the contractor's quotations. If any items are missing, asked them to insert them in the Quotation. If not they will claim those items (throughout the variation) with a higher price later.
  • Ø  If you don't have any idea about the construction industry rates, better to hire an independent Quantity surveyor for the evaluation.
  • Ø  Most of the contractors agreed to do the construction with the low rates but eventually, they will unable to complete work with the agreed rates and request an additional charge to complete it. So keep in your mind, the low rate is not a good reason to select the contractor, you must check the performance of their works.
  • Ø  To check their quality of work and performance, ask about the previous projects which they have already completed. (better to ask from client about the contractor's works)
  • Ø  Visit their ongoing projects or completed projects and check their quality of work. If you don't have an idea to check the quality of work, hire external technical advisers or consultants.
  • Ø  If you Satisfied with the work and prices of one contractor, you must prepare an agreement with the contractor. In the agreement, you have to take the signature from the contractor. Furthermore, if you select labour contractor you must clarify the measuring process. (Example some contractors measure painted walls with door & window openings but others provide another rate for reveals instead of measure openings.)
  • Ø  If you can make agreement to keep 5%-10 % retention from the contractor’s bill it will be helpful to complete your house on time. In addition, you must take a specification of the warranty and notify it's in the agreement.
  • Ø  Finally, you have to select a contractor who is flexible, educated person with a good attitude. Think that, you want to change the design or need to do additional works, the contractor should have the ability to undertake your idea without having a drawing.

I believe that the above article and steps will help you to select a suitable contractor for your construction works.