Top Tips When Hiring an Industrial Contractor for Your Multi-Million Dollar Project
Industrial construction companies specialise in the construction of megaprojects consisting of industrial, residential and commercial complexes. These projects cost hundreds of millions of dollars and may take years to complete. So how do you choose an industrial construction company? Below are a few tips.
Reputation and Experience
Reputation is an important consideration when hiring an industrial construction company. You need a company that understands your needs. Contact previous clients and inquire about the company's level of customer relations and their ability to meet deadlines.
Contact some industrial construction companies and examine their portfolio. Most companies will have ongoing projects in the country or abroad. Visit the projects and evaluate their quality of work. Do not shy off from talking to some of their employees. They could give you insights into the contractor's work ethic and people skills.
Examine the company's financial records. Companies that have been making losses are probably in debt and may, therefore, be unable to maintain construction equipment and pay their employees. As such, they will not complete the project.
The company should provide a comprehensive range of services. For instance, you may need consulting services to determine the viability of the project. For example, what is the current demand for real estate, and what incentives would you use to entice investors to invest in the project? You may need architectural and planning services to ensure the buildings are appealing to investors. For instance, smart buildings and cities are a growing trend in the real estate sector.
Industrial contractors manage hundreds or thousands of employees. As such, you would be interested in their human relations department. For instance, how much does the contractor pay? Are the employees entitled to an insurance cover? If the project runs 24/7, inquire about the working hours. Finally, the contractor must ensure employees have personal protective clothing and are not exposed to dangerous conditions. More often than not, the contractor will have site supervisors that safeguard the welfare of each employee under their watch.
It would be challenging to finance industrial projects through savings. As such, most investors will pool resources through bank finance. Most banks disburse construction loans in phases. The contractor does not receive funding for the next phase if he or she is unable to complete the agreed works. Most banks will run background checks to ensure the contractor has the right resources to complete the project on time. Therefore, work with a contractor who has good working relationships with financial institutions.
When choosing an industrial contractor, examine the company's experience, reputation, financial stability, workforce management and ability to handle bank finance. To learn more about industrial construction, contact industrial construction companies in your area.