Last edited 24 Nov 2020

How to find a contractor for building works


[edit] Introduction

Contractors are organisations appointed by clients (or employers) to carry out construction works. This role is vital to the success of a project, and so great care should be taken to ensure an appropriate contractor is selected. This may involve seeking advice from consultants if the client is inexperienced.

In the construction industry, the process of selecting a contractor is generally referred to as ‘tendering’ and involves preparing tender documents that describe the project, and then inviting tender submissions from prospective contractors from which as selection can be made.

This article describes the process commonly used to put together a list of prospective contractors. Other processes may be used on certain types of projects, such as Private Finance Initiative (PFI) projects.

[edit] Procurement route

It is first necessary to decide what functions the contractor will be undertaking. The contractual role undertaken by a contractor is referred to as the ‘procurement route’ and will depend on the nature of the work required:

Most projects are procured following a traditional route, that is, the building is designed in full, then a contractor is appointed to construct the building. However, there are many other different procurement routes available:

For more information, see Procurement route.

[edit] Tender documents

Once the procurement route has been selected, it is then necessary to prepare a description of what precisely the contractor will be expected to do, so that appropriate contractors can be identified and prices obtained.

This may involve preparing:

This will involve considering issues such as:

For more information, see Tender documentation and Construction contract.

[edit] Identifying potential contractors

For some straight-forward projects there may be many contractors that could undertake the contract, whereas for some complex specialist works there may be very few.

Typically, clients will wish to identify a number of potential contractors, then perhaps reduce this down to a shortlist of 3 or 4 from whom to ask for prices. Negotiations may then be entered into with the preferred contractor, and an appointment made.

It may be possible to put together a list of potential contractors based on:

On complex specialist projects, it may be difficult to obtain any prices, particularly if the site is remote, or the industry is busy. In this case, it may be necessary to change the scope or nature of the works. If only one price can be obtained, it may be wise to seek professional advice about whether the price and tender are reasonable, or whether the works should be re-tendered, perhaps with changes to make sure more responses are received, or taking more active steps to ensure contractors respond.

The next stage is the process of selecting a preferred contractor from the list of potential contractors. To find out more, see How to select a contractor.

[edit] Related articles on Designing Buildings Wiki

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