A common mistake made by church leaders during the building process is choosing a construction company based solely on the price of its bid, according to experts. In many cases, this may lead to unexpected building costs or incomplete construction projects.
To avoid these problems, building committees should spend more time researching the contractor’s job experience, work ethic and reputation before any selection is made.
“Churches are more motivated by how much money they have to spend so they are looking for the cheapest price, but not necessarily the cheapest is the best,” said Kenneth Price, owner of H&W Construction Company of Northport. “So they wind up soliciting work from a contractor who is not reputable (and) they will end up losing money and have an unfinished product in the process.”
Gary Wyatt, president and CEO of Gary C. Wyatt, Inc., of Birmingham, agreed. “It is important that the church look for the contractor that fits them best and will be good stewards of their money,” he said. “Choosing the experienced contractor with stewardship in mind is the best way to minimize risk.”
To help churches make better construction decisions, Gwenn McCormick, author of “Planning and Building Church Facilities,” offers three suggestions for selecting a contractor:
Select a contractor on the basis of his integrity.
“This is one of the two most important concerns in the process,” said McCormick. “No matter what other qualifications he possesses, if he lacks integrity, the committee will likely have to fight one battle after another throughout the construction process.”
Select a contractor on the basis of competence.
Gary Swafford, director of new work and church building services at the Alabama Baptist State Board of Missions, explained that the contractor should have experience in the type of building that he is constructing for the church.
“The contractor’s job history should be compatible in size and in experience to the job that the church is expecting him to do,” he said.
In addition to construction techniques, the contractor should be skilled in cost control and monitoring and controlling complex projects, according to McCormick.
Select a contractor with a good reputation in the area.
“You want a contractor who has earned respect because of quality work and a sound warranty,” said McCormick. “The general contractor is the key person in getting subcontractors to stand behind their work.”
Swafford advises church leaders to follow basic business practices as they decide.
“Check the person’s license and bonding and follow your references by actually visiting buildings that the contractor has constructed,” he said. “Talk with the church leaders (previous clients) about the working relationship between the church and the contractor. Ask if they were nice, flexible and responsive to the requests and needs of the church.”
When working with an architect, church leaders can expect assistance in the selection process, Swafford added.
“When you are using an architect you authorize the architect to finalize working drawings and put the job out (to) receive bids or proposals from contractors,” he added. “He then sets a meeting with the church and goes over the details of (each) bids. After he has explained the conditions of the proposal and answered any questions, the architect and church leaders talk about the terms of the contracts. Then, the church committee takes the input from the architect and makes a formal proposal to the church.”
Before choosing a contractor, church leaders should make sure that they have carefully reviewed the terms of the construction companies’ contracts.
“One of the things to look for in a contract is the quality of materials and fixtures being used,” Swafford noted. “Another thing to look for is what is included in the contract.”
He advises church leaders to use written contracts on all projects and pay attention to what the agreement includes. “A contract should be factually complete and detailed enough to avoid assumptions,” he added. “If there are any points in the contract that are vague or unclear, ask for clarification.”
To avoid these problems, McCormick recommends that churches use the American Institute of Architects’ construction contract with contractors.
“This contract represents recognized industry standards; has clear, legal language; and holds no hidden clauses or bias,” he explained. “If a contractor objects to this contract and insists on using his own standard contract, the committee should view this development with concern and be extremely cautious. They should insist on extensive legal scrutiny of the proposed contract.”
Despite the contract used, Swafford and McCormick agree that a decision to sign should be made carefully.
“Negotiating and executing the contract with the general contractor should not be done lightly or hastily,” said McCormick. “If the committee is to err in this process, let it be at the point of being overly cautious and legally judicious.”
Swafford adds, “Agreeing on a contract will take some time, several days or several weeks, but the time spent studying and clarifying a contract is time well spent.”
According to Swafford, church leaders should also make sure that they understand the payment schedule in the contract before signing.
“The terms of the payment schedule should be included and clear in the contract,” he said.
“There are some general practices of payment but they depend on the type and size of construction. They are almost always calculated on how far along you are in the job, usually on how much work has been done.”
Church leaders should also understand and agree with the time frame in which the contractor can complete the project.
“Ask if the contractor can meet your expectations in terms of scheduling and is he going to be able to agree on a time line that will suit you,” Swafford noted.
What to look for in a contractor
1. Quality and timely work
2. Good track record
3. Timely payment of sub-contractors and suppliers
4. Monitors and controls costs
5. Consistently involves church in decisions
6. Works well with architects and others
7. Good leader/maintains
professional worksite
8. Stands behind his work and backs warranties
9. Low accident history
10. No or few liens put on previous work
Compiled by The Alabama Baptist
Church subcommittees that work with contractors
Church Program and Building Plans Committee
Studies the church ministry, its possibilities and needs, and works with the architect in developing site development/construction plans to fulfill that ministry. Works together with the construction and inspection committee in approving the construction plans.
Construction and Inspection Committee
Works together with the church program and building plans committee in approving the plans — and then alone is involved with the architect and contractor in the inspection and final approval of the building.
Furnishings & Teaching Equipment Committee
Inventories and evaluates existing furnishings and teaching equipment, determines needs, orders and sees to placement into building prior to occupancy date.
Source: Gary Swafford
Alabama Baptist State Board of Missions
Developing a Good Relationship with Your Contractor
–Select a person to be the liaison between the church committee and the contractor.
–Emphasize mutual commitment and a spirit of unity.
–Ask the architect and contractor to discuss how they can work as a team.
–Avoid communicating suspicion.
–Keep the team emphasis at the forefront of communication.
–Find ways to affirm the contractor and compliment him for good work.
–Be reasonable in requesting corrective action.
–Have a spirit of negotiation.
Source: Alabama State Board of Missions, “Planning and Building Church Facilities,” Gwenn McCormick.
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