When it comes to selecting a farm building contractor, the best advice may come from the “Great Communicator” himself – President Ronald Reagan, who was fond of using the phrase, ‘Trust, but verify.”
A University of Missouri Extension publication, “Selecting and Working With a Farm Building Contractor,” suggests you start by compiling a list of potential contractors from local media, farm magazines, and friends and neighbors who have had construction done recently, From there, it’s time to evaluate prospective contractors.
“Any good contractor will be happy to provide potential customers with a list of references, including previous customers,” the publication reads. “Check references thoroughly to find out about workmanship, timeliness and how well each contractor lived up to contract terms. You might also visit with your lending agency representative to get an evaluation of contractors on your list.”
Ag4Life, a resource for farm and ranch families published by the state of Oklahoma, says in addition to references you should check with your local Better Business Bureau and Chamber of Commerce to see if any complaints have been filed against the contractor.
“Get three bids, and use the same language when explaining the type of work needed,” the publication recommends. “Make sure the contractor can stay within your budget. Get the quote in writing, and be sure it spells out any change order costs.”
You should also, it suggests, make sure the agreement specifies only a small down payment and never pay all the money up front.
The University of Missouri Extension publication says when difficulties occur, they are almost always the result of poor communication between owner and builder. They offer a checklist of subjects the two should discuss before the deal is signed. One of those is bid alternatives; the farmer may want to be able to execute portions of the plan by himself or herself, like site preparation or equipment installation work, to keep costs down. The cost of the job minus those components should be worked out in advance.
“The owner or a representative also should be available at specified times for consultation or interpretation of plans and specifications,” the publication states.
A complete set of drawings and written specifications, whether supplied by the owner or the contractor, should be included as a part of the written contract. Nearly every building constructed will experience some changes from original plans and specifications, and the agreement should lay out the procedures for both sides to sign off on the changes.
Ag4Life says the contract should also lay out who will be responsible for cleanup of debris and hazardous waste removal, what warranties are being provided, any necessary building permits requirements, and whether the contractor plans to use any sub-contractors.
“Make sure that the contractor has insurance and is licensed to do the work required,” they say. “Ask for verification.” The four general types of insurance coverage required to afford complete protection during construction are workmen’s compensation insurance, public liability and property damage insurance, owner’s protective liability, and builder’s risk insurance.
Other aspects of the agreement that should be spelled out, the Missouri document says, include who will be responsible for protecting construction materials being stored on site from the elements, and for connection to electric, water, sewer and gas lines as required. “The contractor should be responsible for providing the owner with operational and service manuals for component equipment,” it says. “He also should provide instruction in proper operation of any equipment unfamiliar to the owner.” And the timetable for completion of the project should be established well in advance – particularly if the facility is to be used to house livestock.
Ag4Life adds, “Be sure to ask questions for anything you don’t understand. Following these guidelines for hiring a contractor can help you avoid unnecessary frustration, expenses, or delays in construction.”
