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What Should I Consider When Choosing a Construction Company?

  • Alma Construction
  • Sep 4
  • 5 min read

Updated: Sep 30

Selecting the right construction company can make the difference between a smooth project experience and a costly nightmare. You might be planning a home renovation, commercial build, or major structural work. The firm you choose will significantly impact your timeline, budget, and final results.


This guide provides actionable steps to help you evaluate potential construction partners and avoid common pitfalls.


What Should I Consider When Choosing a Construction Company?

Understand Your Project Needs


Before reaching out to any contractor, clearly define your scope and requirements. Start by documenting exactly what work needs completion, from structural changes to finishing details. Determine your realistic budget range, including a 10-20% contingency for unexpected issues.


Essential things to consider before hiring:


  1. What is your absolute maximum budget, including contingencies?

  2. Do you need permits, and who will handle the application process?

  3. Are there any HOA restrictions or neighborhood covenants to consider?

  4. What is your realistic timeline?

  5. Do you have temporary living arrangements if needed during construction?


Having clear answers to these questions will help you communicate effectively with potential service companies and avoid misunderstandings later in the process.


Research Professionals


Start your search by gathering recommendations from trusted sources. Ask friends, neighbors, and colleagues about their recent experiences. Real estate agents, architects, and supply stores often maintain lists of reliable experts they work with regularly.


Check with local departments to identify active specialists in your area. Many departments maintain lists of frequently-used service providers who consistently pass inspections, which indicates quality workmanship and code compliance.


Check Licenses, Certifications, and Insurance


Verify that any professional you're considering holds current, valid licensing for your assignment type. Request proof of comprehensive insurance coverage, including general liability and workers' compensation policies. Contact the insurance company directly to verify coverage is current and adequate for your project scope.


Key credentials to verify:


  • Current license;

  • General liability insurance;

  • Workers' compensation insurance;

  • Better Business Bureau rating and accreditation;

  • Manufacturer certifications for specialized products.


Any worker who hesitates to provide this documentation should be removed from your list. Also, remove those who claim it's "in process".


Review Past Projects and Portfolios


Request to see examples of recently completed works similar to yours. Quality experts maintain portfolios showcasing their range of capabilities and craftsmanship levels. Pay attention to finishing details, overall design cohesion, and how well the completed work matches the apparent goals.


Ask for the addresses of recent clients and drive by to see how the work has held up over time. Well-built projects maintain their appearance and functionality for years, while poor workmanship often shows signs of deterioration quickly.


Look for versatility in their portfolio. While specialization has value, professionals who handle diverse types often bring creative problem-solving skills and adaptability to their job.


Read Reviews and Ask for References


Contact recent clients directly to discuss their experiences. Prepare specific questions about timeline adherence, budget management, communication quality, and problem resolution. Inquire whether they would hire the same firm again.


Inquire about the cleanliness of the work site, respect for existing landscaping, and consideration for neighbors during construction. These factors significantly impact your daily life during the building process.


Discuss with references about change orders and how additional work was handled. Reputable firms explain changes clearly, provide written documentation, and make price adjustments fairly.


Evaluate Communication and Transparency


Pay attention to how promptly and thoroughly firms respond to your initial inquiries. Organizations that are difficult to reach during the sales process often become even less responsive once work begins.


Assess their willingness to explain processes, answer questions, and provide detailed information about materials and methods. Good professionals educate clients rather than dismissing concerns or rushing through explanations.


Notice whether they arrive on time for appointments and come prepared with relevant materials, measuring tools, and documentation. Qualified presentations often reflect the quality of their work approach.


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Compare Estimates and Contracts


Obtain detailed written estimates from multiple professionals for comparison. Quality bids break down labor, materials, and overhead costs rather than providing single lump-sum figures. This transparency helps you understand where your money goes and compare quotes fairly.


Be wary of estimates that are significantly higher or lower than others. Extremely low bids often indicate corners will be cut or additional charges will appear later.


Review contract terms carefully before signing anything. Look for clear descriptions, material specifications, timeline commitments, and payment schedules. Avoid firms that demand large upfront payments or cash-only transactions.


Compare Different Estimate Components


When evaluating multiple bids, use this framework to compare specialists fairly.

Cost Category

What to Look For

Red Flags

Labor Costs

Detailed breakdown by trade, realistic hourly rates

Vague "labor" line item, unusually low rates

Materials

Specific brands/grades listed, current market pricing

Generic "materials" entry, prices that seem outdated

Permits & Fees

All required permits identified, accurate fee estimates

Missing permit costs, underestimated fees

Overhead & Profit

Transparent markup (typically 15-25%)

Hidden in other categories, excessive margins

Timeline

Realistic schedule with milestones

Overly optimistic completion dates

Warranty Terms

Clear coverage period and scope

Vague or limited warranty language

Ask About Project Management and Timelines


Discuss how the firm manages multiple projects and ensures adequate attention to yours. Inquire about their typical crew size, subcontractor relationships, and supervision methods.


Request for their approach to scheduling and timeline management. Reliable professionals provide realistic timeframes and explain factors that could cause delays, such as weather, permit approval, or material delivery issues.


Find out how they handle material ordering, delivery coordination, and storage. Poor logistics management often leads to delays and cost overruns that impact your timeline and budget.


Look for a Company That Aligns with Your Values


Many builders now offer green options and environmentally conscious practices. Evaluate their commitment to safety practices and worker treatment. Organizations that prioritize employee safety and fair labor practices often demonstrate attention to detail and quality in other aspects of their work. 


For example, established firms like Alma Construction often showcase their values through transparent communication and commitment to both worker safety and environmental responsibility.


Warning signs that should make you reconsider:


  1. Demands full payment upfront or cash-only transactions.

  2. Cannot provide local references.

  3. Gives verbal estimates only, refuses to provide written documentation.

  4. Pressures you to sign contracts immediately without review time.

  5. Cannot show proof of current insurance and licensing.


If you encounter any of these red flags, trust your instincts and continue your search for a more reliable partner.


Conclusion


Choosing the right construction company requires careful research, thorough evaluation. Take time to vet credentials, review past work, and assess communication styles before making your decision. Remember that the lowest bid isn't always the best value, and rushing the selection process often leads to regrets later.


A quality contractor will welcome your questions, provide references gladly, and demonstrate genuine interest in understanding your goals. Trust your gut feelings about potential partners, as you'll be working closely together for weeks or months.


Use this checklist as your guide to find the most trustworthy partner. Know that following these tips will help you pick the right company and avoid costly mistakes that could impact your timeline, budget, and overall satisfaction with the finished work.

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