Common Pitfalls and Best Practices in Contractor Selection

Part 4 of the "Building a Strong Foundation" Series

In our previous post, we discussed various methods for selecting the right contractor for your construction project. Today, in the fourth part of this series, we delve into common pitfalls and best practices to ensure a smooth selection process.

Austin Degenhart

President, D. Hart Consulting

October 11, 2024

Common Pitfalls

A frequent mistake owners make is failing to adequately disclose the terms of the contract documents in the bid or proposal package, or merely referencing an industry form document that may not fully serve the owner’s needs. It is important to remember that drafting construction contracts is a legal practice, not a task for architects. Owners should consult their legal counsel before finalizing the bid or proposal package to ensure it includes favorable contract terms.

Waiting until after selecting a contractor to draft the contract can significantly reduce the owner’s negotiating leverage. To secure the most favorable terms, it is best to include preferred contract terms or forms in the initial bid or proposal packages.

‍

Best Practices

Transparency: Ensure all contractors receive the same information to make fair comparisons.
Legal Review: Have your legal counsel review bid or proposal packages to ensure they include favorable contract terms.
Early Preparation: Include preferred contract terms or forms in the initial bid or proposal packages to maintain negotiating leverage.

‍

Conclusion

Selecting the right contractor is a pivotal decision that can impact the entire construction process. At D. Hart Consulting, we are committed to guiding you through this process, ensuring you make informed decisions that align with your project’s goals and requirements.

Stay tuned for more insights and guidance on optimizing your construction projects.