Whether you’re hiring a construction company for commercial work, a commercial contractor for your business, or a building contractor for any project, this comprehensive vetting guide will help you make the right decision.

Start with Basic Qualifications: What Every General Contractor Must Have

Licensing: Non-Negotiable Requirement

Verify current, valid contractor licensing in your state. In Georgia, check with the Secretary of State. In Florida, check DBPR. Don’t take their word for it—look it up yourself.

A licensed general contractor has met minimum competency requirements and is accountable to state regulatory boards. Unlicensed contractors offer no such protection.

Insurance: Your Financial Protection

Request certificates of insurance showing general liability (minimum $1 million) and workers’ compensation. Call the insurance company to verify coverage is current.

Without proper insurance, you could be liable for accidents on your property. A reputable construction company carries comprehensive coverage as standard practice.

Bonding: Proof of Financial Stability

For larger projects, bonding capacity matters. It demonstrates financial stability and provides protection if the contractor fails to perform. Bonding capacity indicates a building contractor has the resources to complete your project.

Learn more about contractor licensing requirements at the Georgia Secretary of State Licensing Division.

Evaluate Relevant Experience: Matching Skills to Your Project

A contractor who builds great houses may struggle with commercial construction. A commercial contractor experienced in office build outs may not be right for your restaurant. Look for experience with your specific project type.

What to Request from Potential Contractors

• Portfolio of similar completed projects
• Project details including scope and timeline
• Budget performance history
• Photos and project descriptions
• Client contact information for references

Don’t just look at photos. Any general contractor can show pictures of finished projects. Ask for detailed project documentation that proves successful delivery.

Industry-Specific Expertise Matters

Restaurant construction differs from retail build outs. Medical facilities have unique requirements. Industrial projects demand specialized knowledge. Verify your chosen construction company has relevant experience in your specific sector.

Check References: The Most Important Step

Request references from recent projects similar to yours. Then actually call them. Most people skip this step—don’t be most people. Talking to past clients reveals more than any marketing material.

Critical Questions to Ask References

• Did the project finish on time? If not, why? Was the delay contractor-caused or due to external factors?
• Did the project finish on budget? Were there unexpected costs? How were change orders handled?
• How was communication throughout the project? Did the contractor respond promptly to concerns?
• How did they handle problems when they arose? Every project has challenges—how did this building contractor solve them?
• Would you hire them again? This is the ultimate question. A “no” or hesitation speaks volumes.

Ask for at least three references. If a general contractor can’t provide multiple satisfied recent clients, that’s a red flag.

For more guidance on contractor evaluation, review our article on choosing commercial contractors.

Compare Bids Carefully: Why Lowest Isn’t Always Best

The lowest bid isn’t always the best choice—sometimes it’s the worst. Compare bids on an apples-to-apples basis. Cheap bids often become expensive projects when reality sets in.

What to Look for When Comparing Bids

• Are they all pricing the same scope of work?
• What’s specifically included and excluded?
• What allowances are used for materials?
• How does the payment schedule break down?
• What’s the project timeline?

A bid that seems low often becomes expensive when the allowances run out and change orders pile up. A reputable commercial contractor provides detailed, transparent pricing.

Understanding Allowances

Allowances are estimated amounts for items not yet selected—flooring, fixtures, finishes. Low allowances make bids look attractive but lead to overages. Compare allowance amounts between contractors and verify they’re realistic for your expectations.

Trust Your Gut: Soft Factors Matter

You’re going to spend months working with this construction company. Communication style matters. Responsiveness matters. Chemistry matters.

Important Soft Factors to Consider

• Do they answer your questions clearly? Vague answers suggest potential problems.
• Do they return calls promptly? Communication during bidding predicts communication during construction.
• Are they organized in their presentation? Organized proposals suggest organized projects.
• Do they listen to your concerns? A good general contractor understands your vision and addresses your priorities.
• Do you feel confident in their abilities? Confidence comes from competence, not just salesmanship.

These soft factors often predict project experience better than price. Don’t ignore your instincts when they’re telling you something important.

Red Flags to Watch For: Warning Signs That Signal Trouble

Certain warning signs should immediately raise concerns about a potential building contractor. Here are the major red flags that should make you walk away:

Critical Warning Signs

• Pressure to sign quickly or pay large deposits upfront — Legitimate contractors don’t need your money immediately
• Reluctance to provide references or proof of insurance — Professional contractors readily share this information
• Bids significantly lower than competitors without explanation — If it seems too good to be true, it probably is
• Vague proposals lacking detail — Professional bids are thorough and specific
• No physical office or established business presence — Fly-by-night operators disappear when problems arise
• Poor online reviews or BBB complaints — Patterns of problems indicate future issues
• Defensive reactions to questions — Good contractors welcome due diligence

Trust these red flags. They exist because others learned expensive lessons. A reputable general contractor understands your need to vet carefully and cooperates fully.

For more information on avoiding construction scams, visit the Better Business Bureau’s contractor hiring guide.

Making the Final Decision

Choosing a general contractor requires balancing objective qualifications with subjective factors. Verify credentials, check references, compare proposals carefully, and trust your instincts about communication and professionalism.

The right construction company makes construction manageable. The wrong one makes it miserable. Take time to vet thoroughly—it’s time well spent.

Remember: price matters, but it’s not everything. Experience, communication, reliability, and proven performance often matter more. Choose the commercial contractor who offers the best overall value, not just the lowest price.

Your construction project deserves a qualified, reliable building contractor who will deliver on promises and communicate clearly throughout the process.