Getting a new house constructed can be a daunting task for any homeowner. The number of steps and variables involved in the design and construction phase are many. Each of the activities has to be carefully looked in from the planning stage to execution stage. Moreover choosing the right contractor is a very important aspect of the construction process that will determine the course of the project.

Look into these important aspects while choosing the right contractor for your project.

Prequalification: Go through the company profile extensively, this will be your first point of contact with the contractor and looking into the various products and services offered will give you in depth insight on the activities undertaken. Browse through a list of the projects and concentrate on similar jobs to yours that the contractor has executed. Arrange for as many site visits as you can to ascertain the quality and workmanship.

Ask for referrals of previous clients, call them and ask them on how their construction experience was with the contractor in question. Try and get as much information about their construction experience such as rates, times, problems faced etc. as all this will help you avoid mistakes in your own contract. Visit the contractors office and meet his team, this will give you a clear idea on the size and strength of the contractors company. If you would like to probe further ask for an audited balance sheet for the last 3 years and a bankers certificate. A strong balance sheet and bankers certificate will shed light on the financial soundness of the contractor.

It is now time to move to the next stage if the contractor has successfully passed your pre-qualification requirements.

Commercial Terms and Contract Documentation: Ask the contractor for a detailed BOQ or Bill Of Quantities. The BOQ clearly indicates all the items covered in the scope of work of the contractor and has details on areas, per unit rates, specifications and amounts. Ask the contractor to go through the drawings provided by your architect and re check all quantities thoroughly.

This will ensure that most of the items are inline and you are not being under quoted. Allow for a 5% deviation from the BOQ to actual measurements. Invite quotes from at least 3 contractors on the same BOQ, so that you get a fair idea on rates. Make sure you mention the detailed specifications of materials as there can be deviation in prices of no specifications are mentioned. Once the BOQ and prices are finalized move to the next stage:

Initializing Contract: Get a lawyer and prepare a detailed contract that Real estate Projects and the house builders interests. Make sure everything, including all milestones and expectations are documented and nothing is left to assumption. Put down payment terms and time commitments clearly.

One of the most important aspects of any contract is payment. Make sure you and the contractor understand exactly at what stage of completion how much payment will be released. Whenever such stage arises, go and physically inspect the work or hire an architect to do the same for you. Point out any discrepancies that you see and move forward. This will go a long way in ensuring smooth functioning of he contract.

Further information on structuring contracts and managing contractors will be posted here in our next article shortly.