Choosing the right commercial contractor can make or break your construction project. Whether you’re building a new facility, renovating an office, or expanding your operations, the contractor you hire will directly impact your timeline, budget, and overall success. At Daniels Construction, we’ve seen firsthand how the right partnership can lead to exceptional results—and how the wrong one can cause costly setbacks.
To help you make an informed decision, here are five common mistakes to avoid when hiring a commercial contractor.
#1: Not Verifying Credentials & Experience
It might seem obvious, but many businesses skip the crucial step of thoroughly vetting a contractor’s qualifications.
Always check for:
- Licensing and insurance
Ensure the contractor is licensed to operate in your state and carries adequate liability and workers’ compensation insurance.
- Relevant experience
Look for a track record of successful projects similar in size and scope to yours.
- Vetting process for subcontractors:
Most likely, parts of your project will be done by subcontractors, and you should know how a contractor approaches hiring subcontractors to ensure quality and safety standards.
- Certifications and affiliations:
Membership in professional organizations like the Associated Builders and Contractors of Wisconsin (ABC) can indicate a commitment to industry standards.
Tip: Ask for a portfolio of past projects and client references. A reputable contractor will be proud to share their work.
#2: Choosing Based on Price Alone
- While staying within budget is important, the lowest bid isn’t always the best value. A contractor who underbids may cut corners, use subpar materials, or hit you with unexpected change orders later.
Instead, evaluate bids based on :
- Scope clarity
A contractor that understands the full scope of your project and is clear on what work is to be done will help you to avoid costly change orders later.
- Timeline feasibility
If the timeline seems too good to be true…it probably is. Look for bids that are realistic and proactive in the timeline, and for contractors who understand where there might be delays and how to address them on the front end.
- Quality of materials
For a commercial building, you want your structure to last while handling a lot of traffic. Check that quality materials are used to keep your building looking new for years to come and avoid repeat renovations and temporary fixes year-to-year.
- Reputation and communication style
How contractors communicate with you leading up to and during the bid process is essential for evaluating if they will continue to be a valuable partner in your business endeavor. Look to reputable companies who have proven they know how to handle commercial projects with clear communication among stakeholders.
- Partnership Potential
A contractor who can continue to meet your future needs and create win-wins is highly valued. Many clients continue to expand and grow, and being able to work with a trusted contractor can make the construction process more efficient and effective. Find a contractor not just for your current project, but who can help your business throughout its lifetime.
Tip: A detailed, transparent proposal is often a better indicator of professionalism than a rock-bottom price.
#3: Overlooking Communication & Compatibility
Construction projects are complex and require constant coordination. If your contractor isn’t responsive, proactive, or easy to work with, small issues can quickly escalate.
Look for a contractor who:
- Communicates clearly and frequently
Ask about what communication tools are used to inform stakeholders of progress or issues and have a clear understanding of how often you will meet with a project manager to discuss progress.
- Is open to collaboration and feedback
Take note of how the contractor handles initial feedback, and how willing they are to collaborate – this will be key down the road in the project’s life.
- Has a dedicated project manager or point of contact
In addition to the project manager, understand who other members of the project support team are, including subcontractors. If possible, it can be efficient if the contractor utilizes the estimator of your project as the project manager, as they already understand the intricacies of your project
📌 Tip: Pay attention to how they handle your initial inquiries. That’s often a preview of how they’ll manage the project.
#4: Failing to Review the Contract Thoroughly
A vague or incomplete contract can lead to major disputes down the line. Before signing, make sure the contract includes:
- A detailed scope of work
- Project timeline and milestones
- Payment schedule
- Change order procedures for change of scope or unforeseen conditions
- Warranties and dispute resolution terms
📌 Tip: Don’t hesitate to have a legal professional review the contract. It’s a small investment that can prevent big problems.
#5: Ignoring Safety & Compliance Standards
When considering a contractor for your project, their safety practices should be a strong consideration. A reliable and trustworthy contractor should be able to provide information on the following topics:
- Dedicated safety professional and safety contacts, on the job site and in the leadership team
In addition to having the contact information, pre-task meetings and pre-job meetings are a great way to get to know your team when it comes to safety and discuss expectations prior to the contractor entering the jobsite. A dedicated safety professional to perform job site inspections can address any safety concerns before they become larger issues.
- Safety Manual and procedures related to your project
If asking for a copy of the contractor’s safety manual, review for elements that are relevant to your jobsite and ensure it thoroughly covers all safety procedures and considerations. Don’t be afraid to ask your safety team follow-up questions.
- OSHA Citations
A contractor should be honest about any OSHA citations. While nobody is perfect, understanding any prior incidents can help all parties better prepare for future projects. Use common sense when judging citations – a de minimis citation for paperwork is vastly different than a willful violation for fall protection.
- OSHA 300 or 300A
Any contractor should provide a redacted copy of their OSHA 300 or a copy of their 300 A when asked. This should be a document that is easily produced by the subcontractor/ trade partner and if that’s not the case, it could be a red flag that they’re not compliant in more ways than one.
Final Thoughts
Hiring a commercial contractor is one of the most important decisions you’ll make for your project. By avoiding these common mistakes, you’ll set the stage for a successful build that’s on time, on budget, and built to last.
At Daniels Construction, we pride ourselves on transparency, craftsmanship, and long-term partnerships. If you’re planning a commercial project in Wisconsin, we’d love to talk about how we can help bring your vision to life.