1. Contractor Specialty. Don’t hire contractors that may not specialize in the product that is being developed. For example, many companies specialize in commercial construction. Some companies that do commercial work are not successful in areas outside of commercial such as wood-frame or multifamily.
2. Hiring Architects. Make sure that the architect is experienced in the product type desired. Like contractors, most architects might do a little bit of everything but typically specialize in one area. For example, when developing a HUD-financed property, make sure the architect understands HUD issues.
3. Quality Control. A simple checklist can be the difference between missing something of high importance and not missing it. Missing anything can open up a contractor or developer for many future liabilities.
4. Qualifying Subcontractors. Ensure that the subcontractor base is financially strong, can perform as needed, will handle warranty and pays their bills. Many subcontractors were able to get by on shoestring budgets when times were good, but may not survive in today’s down economy. Make sure any major subcontractors are bonded.
5. Budget Controls. Many companies do not check and maintain their budgets over the course of a project. Run and balance budgets at least once per month and more often if there is concern of potential issues on a project. If budgets are monitored regularly, an issue is more likely to be identified at an earlier stage, hopefully reducing any financial impact.
6. Systems. Many companies do not employ management systems that will steer a project to the end. It is important to develop and maintain schedules and keep issue logs, change order logs and submittal logs to track project progress.
Source: Marc Padgett, Summit Contractors Group, Jacksonville, Fla.