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Frequently Asked Questions About Construction Companies
Finding and choosing the right construction company for your project can raise many questions. We've compiled answers to frequently asked questions about construction companies and the construction process in the USA.
How do I find a reputable construction company?
Finding a trustworthy construction company requires thorough research. Key steps include:
Check Online Directories: Utilize online directories like DemolitionMatch to find construction companies in your area and review their profiles, ratings, and customer reviews.
Ask for Recommendations: Reach out to friends, family, neighbors, or colleagues who have recently completed construction projects and ask for recommendations.
Verify Licensing and Insurance: Ensure the construction company is properly licensed to operate in your region and carries adequate liability and workers' compensation insurance.
Request References: Ask the construction company for references from previous clients and contact them to inquire about their experiences.
Review Portfolios: Examine the construction company's portfolio of past projects to assess the quality and scope of their work.
Schedule Consultations: Meet with several construction companies to discuss your project and get a sense of their professionalism, communication style, and understanding of your needs.
How do I get a construction permit?
Construction permits are typically required for most building and renovation projects to ensure compliance with building codes and safety regulations. The process for obtaining a construction permit involves:
Submit Application: The project owner or their authorized representative (e.g., architect or contractor) submits an application to the local building department.
Provide Plans and Documents: The application must include detailed plans, specifications, and other required documents (e.g., site plans, structural calculations, energy efficiency reports).
Pay Fees: Permit fees vary depending on the project's scope and location.
Inspections: The building department conducts inspections throughout the construction process to ensure compliance with the approved plans and building codes.
Final Approval: Once the project passes all inspections and meets the requirements, the building department issues a Certificate of Occupancy (CO), allowing the building to be occupied.
The construction company or architect can assist with the permit application process and guide you through the necessary steps.
What are the different types of construction contracts?
Construction contracts can be structured in various ways, each with its own implications for risk and payment. Common types include:
Lump Sum Contract: The contractor agrees to complete the project for a fixed price, regardless of actual costs incurred. This type of contract offers more price certainty for the owner but shifts more risk to the contractor.
Cost-Plus Contract: The owner reimburses the contractor for actual costs incurred plus a fee (fixed percentage or fixed amount). This contract provides more cost transparency for the owner but less price predictability.
Time and Materials Contract: The owner pays the contractor for actual labor hours and materials used plus a markup. This type of contract is suitable for smaller projects or work with uncertain scope but can lead to cost overruns if not carefully managed.
Unit Price Contract: The contractor provides a price per unit of work (e.g., square footage, cubic yard). This contract is commonly used for projects with repetitive tasks and well-defined quantities.
The choice of contract type depends on the project's nature, the owner's risk tolerance, and the level of cost certainty desired.
What is a change order in construction?
A change order is a written agreement between the project owner and the construction company that modifies the original construction contract. Change orders are common in construction projects and can occur due to:
Design Changes: Alterations to the original plans or specifications.
Unforeseen Conditions: Unexpected site conditions or hidden problems discovered during construction.
Owner Requests: Additions or modifications to the scope of work requested by the owner.
Change orders must be documented and signed by both parties to ensure agreement on the scope of the change, the impact on the project schedule, and the adjusted cost. Properly managing change orders is crucial for avoiding disputes and ensuring a smooth construction process.
How do I find a reputable construction company?
Finding a trustworthy construction company requires thorough research. Key steps include:
Check Online Directories: Utilize online directories like DemolitionMatch to find construction companies in your area and review their profiles, ratings, and customer reviews.
Ask for Recommendations: Reach out to friends, family, neighbors, or colleagues who have recently completed construction projects and ask for recommendations.
Verify Licensing and Insurance: Ensure the construction company is properly licensed to operate in your region and carries adequate liability and workers' compensation insurance.
Request References: Ask the construction company for references from previous clients and contact them to inquire about their experiences.
Review Portfolios: Examine the construction company's portfolio of past projects to assess the quality and scope of their work.
Schedule Consultations: Meet with several construction companies to discuss your project and get a sense of their professionalism, communication style, and understanding of your needs.
How do I get a construction permit?
Construction permits are typically required for most building and renovation projects to ensure compliance with building codes and safety regulations. The process for obtaining a construction permit involves:
Submit Application: The project owner or their authorized representative (e.g., architect or contractor) submits an application to the local building department.
Provide Plans and Documents: The application must include detailed plans, specifications, and other required documents (e.g., site plans, structural calculations, energy efficiency reports).
Pay Fees: Permit fees vary depending on the project's scope and location.
Inspections: The building department conducts inspections throughout the construction process to ensure compliance with the approved plans and building codes.
Final Approval: Once the project passes all inspections and meets the requirements, the building department issues a Certificate of Occupancy (CO), allowing the building to be occupied.
The construction company or architect can assist with the permit application process and guide you through the necessary steps.
What are the different types of construction contracts?
Construction contracts can be structured in various ways, each with its own implications for risk and payment. Common types include:
Lump Sum Contract: The contractor agrees to complete the project for a fixed price, regardless of actual costs incurred. This type of contract offers more price certainty for the owner but shifts more risk to the contractor.
Cost-Plus Contract: The owner reimburses the contractor for actual costs incurred plus a fee (fixed percentage or fixed amount). This contract provides more cost transparency for the owner but less price predictability.
Time and Materials Contract: The owner pays the contractor for actual labor hours and materials used plus a markup. This type of contract is suitable for smaller projects or work with uncertain scope but can lead to cost overruns if not carefully managed.
Unit Price Contract: The contractor provides a price per unit of work (e.g., square footage, cubic yard). This contract is commonly used for projects with repetitive tasks and well-defined quantities.
The choice of contract type depends on the project's nature, the owner's risk tolerance, and the level of cost certainty desired.
What is a change order in construction?
A change order is a written agreement between the project owner and the construction company that modifies the original construction contract. Change orders are common in construction projects and can occur due to:
Design Changes: Alterations to the original plans or specifications.
Unforeseen Conditions: Unexpected site conditions or hidden problems discovered during construction.
Owner Requests: Additions or modifications to the scope of work requested by the owner.
Change orders must be documented and signed by both parties to ensure agreement on the scope of the change, the impact on the project schedule, and the adjusted cost. Properly managing change orders is crucial for avoiding disputes and ensuring a smooth construction process.