Finding and Interviewing GCs: The Walkthrough

Part Two of a Five-Part Series: Getting Estimates and Choosing a Contractor

Introduction

If you’re just joining us, we’re in the middle of a 5-part series covering how to get good estimates for your construction project. Everyone knows it’s important, but most people have no idea where to start, or how to determine whether the answers they’re getting are good, bad, or ugly.

So…I decided to do something new around here: a 5-part series covering this topic! As many of you know, I was a construction estimator and project manager at a general contractor before I became an architect, so I know firsthand how to read construction estimates - because I did them myself! These days, in my architectural practice or GCing my own projects for my real estate investments, I see that experience now through the eyes of an owner.

So what will we be covering?

1. Creating a Bid Package That Gets You Solid Estimates [last week]

2. Finding and Interviewing GCs [today’s topic]

3. Comparing Estimates: The Basics That Get You 80% of the Way There

4. Comparing Estimates: Creating a Bid Normalization Spreadsheet

5. Contract Structures: Fixed Price or Cost Plus?

This will be mostly geared towards residential projects, and small-medium multifamily/commercial projects. Larger projects have a language all their own, and while the concepts I’ll be discussing still apply, there are often special considerations.

As usual, be sure to discuss any of this with your project professionals and/or legal advisors – things can vary widely depending on what jurisdiction you’re in. This is meant to be an *overview,* not a comprehensive analysis. Believe it or not, there is *a lot* more to all these topics than I’m able to cover even in five newsletters. But this is a great start!

Ok, let’s dive in!

First, some resources

- Last week, I launched my brand new Outline Specification Template - 5 pages of actionable, editable organization – all to help you get better, more accurate quotes from builders and GCs on your projects.

- This week, I want to highlight my *new and improved* Project Planning Workbook! With over 30 pages of actionable worksheets from budgeting to interviewing contractors to keeping minutes during meetings, I’ve just added two bonus sections – “how to make decisions,” and a “don’t forget the little stuff” checklist.

Note: if you’ve already purchased the Workbook, just drop me a line, and I’ll send you the updated version, no charge

- My new podcast! Called “Home: The Second Story,” my co-hosts and I interview owners who’ve recently been through a major renovation project or new build, and they share their hard-won wisdom – and what they’d do differently, knowing what they know now! Get it wherever you listen to podcasts [Apple, Spotify, YouTube, etc.]

Ok, let’s dive in:

Finding and Interviewing GCs

So as of last week, you’ve got a solid bid package to give to contractors to get an estimate – nice work! But now, we need to find you some GCs [general contractors] to take a look at your project and give you some estimates.

We’ll go over the following:

• How to find GCs/builders who are appropriate to your project and budget

• The process of getting them to give you estimates

• How to interview GCs/builders and conduct a walkthrough, including the most important questions to ask

• Checking references

This step can be an intimidating one for owners, especially if they don’t have a lot of experience in the construction industry or haven’t done a project before. Owners are often concerned that they’ll be taken advantage of, that they don’t know the right things to say, that they don’t understand all the lingo – and yes, those are all things that are very real!

The thing is, construction – and contractors – are just like people in other aspects of life. There are really great ones who sincerely care about doing a good job, are fair and hardworking, and who do this kind of work because they deeply care about it. And…there are some that give the good guys a really bad name.

So, the key is finding the good ones, because you’re not going to become a construction expert overnight. Even with a couple of projects under your belt, you’re no match for someone with industry knowledge and decades of experience. So stop worrying about becoming an expert, and instead, hire people who are!

First you just need some names and start making a list of potential candidates. Use your network!

• Ask friends and family – who have they used and liked? Or maybe they know someone who did a renovation and loved their contractor?

  • Key: Make sure you’re only adding people to your list who have done similar projects. Even if your sister had an amazing builder who renovated their bathroom, he might not be the right fit for a whole house renovation.

• Social media. Start following local builders on Instagram. Who is doing work you admire? Who is talking about their work and their clients in a way that’s professional and resonates with you?

  • Key: Social media can hide a lot, too – many great builders don’t have time or inclination to do much on social media. And many mediocre ones can easily create a slick image of themselves online. Let your instincts guide you!

• Drive around. Whose signs do you see, in your neighborhood or working on houses like yours? Stop by a jobsite you’re intrigued by, and ask who’s doing the project, if you don’t see a sign.

  • Key: Seeing a jobsite in person is a great way to vet a builder – is it neat, organized, and professional?

• Ask your architect. Architects and designers are a great resource, because they work with a variety of builders, often repeatedly. They can help you match the right builder to your project, and can speak to a builder’s track record. Also, having an established builder-architect relationship usually means a smoother project!

  • Key: Architects often have long-established relationships with several different builders, and many builders won’t take calls from homeowners directly – an architect can often get you in a lot faster with reputable builders.

Ok, now we’ve got our list of builders, and it’s time to set up meetings. As I just mentioned above, it can sometimes be hard to get in touch with good builders – they are wary of “tire kickers” and people who aren’t serious. Having an architect helps cut to the chase and get you in the door.

Set up the meetings to happen at the site of the project. Your spouse and/or anyone else who will be making decisions on the project should be there with you, and you should have copies of your bid package on hand. Ideally, you’ve sent that package ahead to the builder, so they have a chance to familiarize themselves with it.

Walk through the space, explaining the project and answering the builder’s questions. Take careful note of their responses – are they helpful? Are they respectful? Do they speak to both of you [not just the man in the room…]? What kind of “vibe” do you get from them? Is this someone you want to work with for months on end and have in your house? What does your gut tell you?

Ideally, you’re working with an architect, and the architect can lead these conversations – we do it for our clients all the time, and we bring our knowledge and experience from thousands of these conversations to help our clients parse all the answers they’re getting from the builder.

And…make sure you’re asking the big questions:

• Why are you the right builder for this project?

• What challenges do you see in for this project? What excites you about this project?

• How long do you think this project will take? When can you start it?

• When will you have an estimate ready for us to review?

• Tell us about your relationships with your subcontractors?

• Tell us about a time when something went wrong on a project. How did you handle it, and how did it play out?

• What is your invoicing cadence and payment terms? What kind of deposit do you ask for?

• Do you want to do this project?

Basically, you’re looking for good answers around how they’ll execute the project, what the cost will be, whether they’re a good fit for the project and for you, whether their communication style works for you, and whether they’ll stick to their word. For example, if they say they’ll get the estimate back to you in a week, and it takes them two, that’s not great!

You should also ask for references, and check them. These should be people who have done a major project with the builder in the last few years, and ideally, is a project you can see, either in person or on their website. Of course the builder will give you names of people who will speak well of them, but calling them on the phone [crucial!] is the cheat code to being able to read between the lines.

If you ask the magic question – “Would you work with this builder again?” or “If you had it to do over, would you choose this contractor again?” – you’ll be able to tell a lot. from their tone of voice, whether they hesitate, etc. I’d also ask how the builder handled when something went wrong. There is no such thing as a perfect construction project – what matters is having someone who can execute and react professionally when things go sideways!

Conclusion

Finding a contractor can be tough – but if you use your networks, your common sense, and have other trusted professionals and resources you can trust [your architect!], you’ll be fine! Keep your wits about you, and recognize that while you may not know as much about construction as they do, you don’t want to work with someone you have trouble communicating with…no matter how knowledgeable they are. And…you certainly don’t want to work with someone who is just a slick salesman. Listening to your gut, your architect, and the references can really help.

Thank you for joining - and please do forward to anyone you think would benefit. And stay tuned for the next three installments!