How do you check out your GC before the work starts?

[Brent Zande]

I read a Facebook post recently in a Real Estate Investment Group that was asking for advice about suing a GC that took the investors money and did not perform the work. This is a fairly common theme in these groups, GC is bad, doesn’t show up, goes bad etc, and the investor is stuck with unfinished projects in various stages. I think an ounce of prevention is still worth a pound of cure, so here are some simple steps you can take to improve your odds with your next GC.

Make sure they are Bonded, Insured and Licensed. Folks, this is basic 101 stuff here. Bonding insures your project gets done, insurance Work Comp and Liability (Yes BOTH) prevent you from being hung out if something goes wrong, and licensing insures that a minimum amount of knowledge exists to be a GC.

Skills test- go and see a finished project, see one under construction too. It’s a real plus if you can see a project similar to the one you are asking the GC to undertake. Does it look and feel like quality work? Is the site looking good? How happy do the subs seem to be?

Speak with current and past clients. Ask these questions:

How did the GC do on timeline?

How did the GC do on budget?

How did the GC do on communication?

What surprised you in this project?

Will you use this GC again?

Ask the GC about their processes. Do they have any written processes? Do they proactively communicate? How will they show you what work has been done on your project? How do they bill? Where and when will they need your involvement?

A GC with processes in place is going to also be a GC that has experience and is making the effort to maintain consistency.

By doing these four basic due diligence checks on your next GC you are much more likely to have a good and profitable outcome and hopefully you find the GC that helps you scale your business to great success.

What are some things you do to check out your GC before the work begins?