Construction Companies Champaign

Frequently Asked Questions About Construction Companies

What is the difference between a construction manager and a general contractor?

While both construction managers and general contractors play important roles in a construction project, their responsibilities and involvement differ. General contractors primarily focus on the construction phase, managing subcontractors, schedules, and budgets. Construction managers have broader involvement, starting from the project's inception, providing guidance on design, bidding, and contract negotiations, in addition to overseeing the construction phase. They act as the owner's representative throughout the project lifecycle.

What questions should I ask a construction company before hiring them?

Before hiring a construction company, ask these essential questions:

• Experience: 'How long have you been in business, and what experience do you have with projects similar to mine?'
• Licensing and Insurance: 'Are you licensed and insured? Can I see proof of your coverage?'
• References: 'Can you provide contact information for past clients?'
• Project Management: 'How will you manage the project timeline and budget? Who will be my point of contact?'
• Communication: 'How will you keep me updated on the project's progress?'
• Warranties: 'What warranties do you offer on your work and materials?'
• Payment Terms: 'What are your payment terms? Do you require a down payment?'
• Change Orders: 'How do you handle change orders if unexpected issues or modifications arise during the project?'

Clear communication and detailed answers to these questions are vital for a successful working relationship.

What is a construction bond?

A construction bond is a type of surety bond that protects the project owner from financial losses if the contractor fails to fulfill their contractual obligations. It acts as a guarantee that the project will be completed as agreed or that the owner will be compensated for any damages or losses incurred due to the contractor's breach of contract.

What is a construction contract?

A construction contract is a legally binding agreement between the property owner and the construction company outlining the project's scope, responsibilities, payment terms, and other essential details. Key elements of a construction contract often include:

• Scope of Work: A comprehensive description of the project, including materials, specifications, and deadlines.
• Payment Schedule: Details of payment milestones and amounts.
• Change Order Procedures: How modifications and additional costs are handled.
• Dispute Resolution: Methods for resolving conflicts or disagreements.
• Warranty Information: Guarantees on workmanship and materials.

Carefully review and understand all aspects of the contract before signing. If necessary, consult with a legal professional for clarification.