It can be difficult when choosing the right multifamily construction contractor. You must make important decisions when choosing a contractor.
If you’re interested in developing or renovating your multifamily housing, apartment complexes, new development, duplexes you should think smart before investing into a construction company or contractor.
Think Construction Company manages interior renovations, MEP projects, repiping, kitchen remodeling, bathroom remodeling, mechanical services, plumbing services, electrical services, clubhouse remodeling and much more. Choosing a general contractor is one of the most important decisions you’ll make and we can provide to you the right resources to get the job done. Whether you’re a developer yourself, or simply interested in investing in a development project, it’s essential to understand a contractor’s role and what you need to know to select a qualified, professional contractor that will get the job done right. Think Construction Services provides services and partners from
Just like general contractors for single-family homes, multifamily and commercial contractors are responsible for nearly all stages of the building process. This generally includes:
Before agreeing to a loan, a lender will typically also want a borrower to have a takeout commitment from a permanent lender. This means that the borrower will have the ability to refinance their initial construction loan, fully paying back the construction lender. Investors and developers will always want to consult with lenders before selecting a general contractor.
Research is the first step in selecting a general contractor for a multifamily development project. A developer or investor may wish to search online, ask other developers for recommendations, or might even wish to find local properties that they like, and then look at city or county records to determine which contractors worked on them. If they are utilizing construction financing, they may also wish to ask their lender which general contractors they recommend.
As a multifamily investor or developer, knowing how much you’ll pay for your general contractor is essential to the selection process. Below, we’ve listed some of the most important factors to consider.
With all this in mind, it’s important to appreciate that clients will generally pay a general contractor in a series of predetermined disbursements, to be issued on a monthly basis, or on an incremental basis, as the various stages of the project are completed.
If you want to make sure that your multifamily construction project goes smoothly, it’s incredibly important to ensure that you choose a contractor who is licensed, bonded, and insured. When it comes to licensing, contractors are licensed by a state board or agency, and, while specific names vary by state, their functions are generally the same. Working with an unlicensed contractor is extremely risky, due to the fact that you will generally not be able get insurance or pursue certain kinds of legal claims against them. In addition to being insured, a contractor should also be bonded.
In addition to being licensed and bonded, a contractor should also be insured, which, in most cases, indicates that they have general liability (GL) insurance. General liability insurance can help protect both property owners and general contractors in a variety of scenarios, including personal injury lawsuits by subcontractors, as well as provide a way for an owner to sue a general contractor or their subcontractors for poor work without putting the general contractor (and the project) in financial jeopardy.
Just like any important transaction, closing the deal with a general contractor requires a contract, often referred to as a construction contract agreement. Smart investors and developers will want to make sure that this document covers all relevant aspects of a contractor’s work, as well as contingency clauses that cover unexpected events, such as accidents or potential financial issues. For this reason, an experienced real estate lawyer should generally draft and review a client/general contractors’ contract before it’s signed. In general, the contract should include:
To get an idea of what a commercial construction contract looks like, one can easily search for free templates, however, since each project is different, an attorney should always be involved in the contract creation and signing process.
In some ways, choosing a general contractor is like choosing a spouse, choose wisely, and things will go very good for you, but chose poorly, and you could be in for serious trouble. Think Construction Services can provide
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