The Expert Podcast

Dave Panelli, licensed General Building Contractor at Secure Builders, here. We're going to talk today about what general contractors do and what the industry is feeling in terms of changes and adaptations.

This article from the BBC discusses how technology is not transforming building; robots can't yet construct a building. There's a really good picture here of some people lifting up the wall of a building. If you took a worker from a 1920s construction site and transported them to a present-day project, they wouldn't be surprised by what they saw. That's the headline, which is true—most of the building procedures and construction skills are about the same. They might see some power tools and more modern versions of hammers, lumber, and boards, but basically, it's the same thing. Building has not yet become technical or technological for that matter.

General contractors are key to having structures put together from a blueprint, from an architectural drawing, based on the client's needs. If you're looking to put on an addition, build a new building, remodel, or do tenant improvements in a commercial property, the general contractor is going to be the one who takes all the plans, takes all the input from the client, ensures that it passes code and building permits, and coordinates with all the subcontractors. You need a lot of specialized skills to complete a job: plumbers, framers, electricians, insulation experts, maybe roofers. There are dozens of subcontractor skill sets that go into a build project. You have to source the lumber and materials, and that's what the general contractor does.

The general contracting company may do some of the work—they may handle some of the framing, siding, and painting. But it's more important that they coordinate the job; they're like a big project manager. A good general contractor can be worth their weight in gold because they create excellence on the worksite, ensuring the job doesn't go over budget or past the necessary timeframe.

If you're planning a larger project, even before you hire the general contractor, start thinking about your strategy and what the important factors are. Use that as a decision-making process before hiring the GC because different General Contractors may have different skills and expertise. Some may be better at residential projects, some at commercial ones, some at single-story buildings, and some at multistory buildings. You want to get a sense of what the general contractor is skilled at.

Another example is that many General Contractors like to do the excavation part—digging out the foundation and putting in the footings. Some don't do that at all. If your project is excavation-heavy, make sure your GC is familiar with that so they're not subbing out the tasks that are critical to your project, which could add to the cost.

You do want to get some bids. Don't just hire the first person you find. However, don't get too many bids either. If you're putting it out for seven or eight bids for a medium-sized project, you run the risk of finding a bidder who bids too low just to cause trouble and can't finish the job. You also risk other contractors finding out you're bidding it all over town, so they won't take you seriously. Two or three bids are often the sweet spot, depending on the market in your area. Of course, if you don't feel like the two or three you talk to are a good fit, then you can reach beyond that.

You should talk to the contractors before getting bids to find out who's a good fit. Find out which ones communicate well with you, and which ones are curious about your project. If they come out, scope out the job, and put eyeballs on it before bidding, that shows they're interested and hands-on with the customer. They may not be able to do that with every bid because they may have 20 bids for every job and may not want to take unpaid time away from paying clients. But the more customer service you get from the general contractor, the better.

Also, make sure they're properly insured, bonded, and licensed. Make sure none of those are expired. We have a division that's a licensed private investigative agency, and we can check that out for you. We also have a division that's a licensed commercial insurance broker, so we can answer questions about insurance. If you need to discuss any of these subjects with an expert, you can click the link below to arrange a live, one-on-one consultation with a licensed contractor, investigator, insurance company, or surety bonds expert.

Treat the construction project as a serious endeavor because it's going to cost you tens, if not hundreds, of thousands. You want to make sure you get the right kind of professional to complete the job so it comes out the way you want, and you won't have to go back later to fix problems.