ᐅ General Contractor – What Criteria Should Be Used for Choosing One?
Created on: 15 Aug 2018 16:42
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HausbauTiNa
Hello everyone,
We are now in the final negotiations for our construction project.
There are two general contractors (GCs) left.
GC1: 2 site managers, 1 draftsman, 14 masons, 20 years on the market, 30 houses per year.
GC2: 2 licensed architects, 1 structural engineer, 20 years on the market, 15 houses per year, all construction services subcontracted to well-coordinated firms.
GC1 is about 2,000 EUR cheaper with the same scope.
GC2 has put a lot of emphasis on details in the planning and provided very helpful advice.
Recommendations:
GC1: Visited 2 houses, positive feedback.
GC2: Visited 1 house, positive feedback, recommended by the expert.
GC1 might still reduce the price by around 5,000 EUR based on experience.
GC2 has already indicated that with a price of 290,000 EUR, a maximum discount of 1,500 EUR is possible because they price very tightly.
GC2 is very transparent regarding the list of subcontractors, etc.
Our favorite is still GC2.
Now the issue:
Due to health reasons, the structural engineer at GC2 will be absent for some time, which means 33 percent less workforce in the company.
What criteria did you consider when choosing your general contractor?
We are now in the final negotiations for our construction project.
There are two general contractors (GCs) left.
GC1: 2 site managers, 1 draftsman, 14 masons, 20 years on the market, 30 houses per year.
GC2: 2 licensed architects, 1 structural engineer, 20 years on the market, 15 houses per year, all construction services subcontracted to well-coordinated firms.
GC1 is about 2,000 EUR cheaper with the same scope.
GC2 has put a lot of emphasis on details in the planning and provided very helpful advice.
Recommendations:
GC1: Visited 2 houses, positive feedback.
GC2: Visited 1 house, positive feedback, recommended by the expert.
GC1 might still reduce the price by around 5,000 EUR based on experience.
GC2 has already indicated that with a price of 290,000 EUR, a maximum discount of 1,500 EUR is possible because they price very tightly.
GC2 is very transparent regarding the list of subcontractors, etc.
Our favorite is still GC2.
Now the issue:
Due to health reasons, the structural engineer at GC2 will be absent for some time, which means 33 percent less workforce in the company.
What criteria did you consider when choosing your general contractor?
H
HausbauTiNa17 Aug 2018 19:25Both cases apply ;-)
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Obstlerbaum20 Aug 2018 21:05Liquidity (how stable are the companies financially)? Credibility (parallel companies, company restructurings, management changes among family members)? History of legal disputes? Can you provide references who can be contacted?
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HausbauTiNa20 Aug 2018 21:16Obstlerbaum schrieb:
Liquidity (how stable are the companies)? Reliability (any related companies, name changes, changes in management between family members)? History of legal disputes? Can you provide references we could contact?The managing directors of GU2 founded the company 25 years ago and have been continuously in charge since then. There have been no name changes or restructuring.
Several independent experts have so far reported almost exclusively positive feedback regarding the construction process.
Liquidity is an important point though:
How did you verify it, or who did you have check it for you?
--> We reviewed the financial statements published in the official company register, but especially with smaller companies, it’s often a bit like “fishing in murky waters.”