How to choose a commercial builder in the Perth construction market

Are you thinking of building a Warehouse, Factory, Church, Commercial complex … Not sure how to choose a commercial builder in the Perth construction market?

Don’t know where to start?

With the recent downturn in the Perth economy, the building game has become a risky place to be if you’re not skilled up on what to look out for in a builder.

Commercial Builders are quoting below margin just to win the job and worrying about how to make their profit later. Meaning they will find ways to “squeeze” more money out of you to make their profit. 

This method can result in some pretty disastrous risks.

If a builder has taken on a few jobs at below margin they may find their cash flow suffers and soon they won’t be able to pay their trades. When they don’t pay their trades the work stops. The work stops, your building comes to a halt. Leaving you possibly paying rent on your current premises and loan repayments for a building that you don’t know when you will get to occupy.

Alternatively, you can be left paying more for a building than you expected because now the builder has found all these “extras” that aren’t in their quote. Sure you can negotiate but really you’re bent over a barrel, you need the project finished.

So when choosing a commercial builder for your next commercial project, take the following into consideration;

• Remember; don’t select a builder based on price! You usually get what you pay for! 
• If they talk about relationships this is important, meet with the builder a few times. Compatibility is important. 
• Have they got experience in building what you require?
• Will they give you the contact numbers of references?
• How many repeat clients do they have? 
• Ask for references of subcontractors. Do they pay on time?
• Have they been around for a while?
• What are their current commitments? Do they have too much work on? Have they got no work?
• What measures do they have in place for variations? 
• Do they have the required licences and insurances? 
  • Builders Registration
  • Public Liability 
  • Workers Compensation
• Are they willing to do Bank Guarantees?
• Unsure:
• Get your accountant to do a credit check

Download our tips on “what to look for when choosing a commercial builder”