Getting a good deal on construction services is not as easy as it might sound. True, it is a buyer’s market for construction services today. Some owners are trying to get the most building for the least money.

Sounds good in principle. But there are definite drawbacks to consider. Here’s a story to illustrate my point.

Several years ago I was asked to provide expert testimony on a project that went terribly wrong.

On occasion, at gatherings of contractors, the discussion drifts to change orders. Someone will say, “I’m glad to see architects and engineers are finally paying for their mistakes.” I have never agreed with that school of thought.

I have been discussing how building owners can protect themselves when their building contractor stumbles. But in some cases, the client is a willing participant.

I have been writing about companies that are at risk of bankruptcy. But the issue is of bankruptcy involves more than just money.

During these times, many companies are battling for their survival. For some companies, ethical values are considered a luxury that is too expensive.

These are signs the company you are working with may have lost its professional ethics:

Your project is coming to close and you are just about ready to move into your new building and take a vacation.  But….

Once the contractor says the project is complete, it is time for you and your team to perform a “punch list” inspection of your project. Now is the time to review the project to ensure it meets the contract requirements and there are no workmanship issues. If there are workmanship issues, note them and ensure they are corrected.

Your team is in place, your goals are established. Now all you have to do is see that your project is completed. Easier said than done! – especially if you are not familiar with construction.

When your contractor is struggling, it is reasonable to request weekly progress meetings. In the progress meetings, review the past week and the plan for the following week. Topics to discuss:

You find your contractor has stumbled, and you are not in a financial or legal position to replace it. Your first instinct is to get even with the individuals that are causing you to lose sleep. Revenge is sweet, for that first ten minutes. Then it gets expensive.

Time to throw out your original expectations and establish new priorities to finish the project. 

Ask yourself: What are the “musts” for the project? Possible answers could be:

The recommendation I am presenting is similar to the advice I received while skydiving. If your parachute malfunctions, you must quickly assess the magnitude of the failure. Total failure is easy: break away from the chute and go for the reserve. However, a partial malfunction is not so easy. You have to decide how to react based on the consequences you may face (broken leg vs. broken neck). If you break away from the main chute and the reserve fails, there are no backups.
 

Construction equipment is one of many possible warning signs of impending contractor failure, and one easily observed. No matter the state of equipment, there are always signs to watch for. If your contractor has no equipment, all old equipment, or all new equipment, it could mean they have no reserve equipment if they stumble on projects.

Here are some questions you should assess when selecting a contractor:

•    Are the contractors’ pickup trucks in need of physical repair?

Finally we are seeing some improvements in our economy. This good news does not mean it’s time for clients to ease up on their vigilance in choosing a contractor or monitoring their current contractor.  Some businesses that have been able to “hang” through the worst time may not have sufficient energy or resources to continue to flourish. This is the time we may start seeing such companies quietly closing their doors.

How do you know if your contractor is in a weakened position?