HOW TO FIND THE GOOD CONTRCTORS, HOW TO EVALUTE THE CONTRACTORS. WHAT ARE THE FACTORS EFFECT ?

The good contractor is a contractor whose credentials are sound.References, Record of execution of similar works,Establishment, Holding of Plant and machinery,The existing work load,,Record of earning authenticated by his Charted Accountant.These are parameters one should look for.Once you are convinced,the contract can be awarded.

I have been hiring and managing contractors, sub-contractors, trade contractors and workers...on three continents...for nearly 30 years.  I could make a whole host of comments about resumes, recommendations and references, but these seem to have been well covered already.

What I will add though is as follows:  1) Do not judge a book by its cover; do not make definitive judgments based on appearance, dress, vehicle, etc...much less on ethnicity, language, class or caste.  2) You can tell a lot about an individual by the way he presents himself, by the way he talks about himself, about his background, experience, skills or trade.  All of us can be fooled at times...and we do want someone working for us who is successful and confident...but you need to be able to decipher sincerity from puffery.  3) Likewise, you can tell a lot about someone simply by the way they refer to and handle the tools of their trade, whether those be computers, heavy equipment, power tools, etc...or simple hand tools.  An individual who does not show respect for his tools will not respect yours or your job.  4) Whereas it is true that sometimes the very best hiring decision you make is to not-hire...and in this sense, your "gut" is oftentimes the best judge (after all, resumes can be faked, recommendations falsified and references are "always" positive)...it is usually true that the best hiring decision you make is when you decide to train, nurture and be patient with whoever it is that you do hire.  And 5) Usually the best source of good people is your top competition.  If your competition is producing well...efficently, profitably and with superior quality...then you should want your workforce to be as good, if not better than theirs.  Why not start with the best and then try to make them even better?  And should you find that some of those "good people" are loyal to their present employer, this is a quality to be admired...this is what you want in your people.

Money...that is salary, contract amount or rate of pay...should not be the final criteria in your hiring decision.  Whereas all "good people" should and deserve to be paid well, money is not their only consideration and should not be yours as well.  Think about those things that make an employment, job, project or work-site appealing to you...what do you find most satisfying about a work setting?...and try to incorporate some of those elements into what you offer in the position you're looking to fill.  You may find that by accommodating some of those things which contribute to overall job-satisfaction actually enables you to still hire the best, but for less than "top-rupee".

Finally, once you have your "good people" on board, the governing rule should be "firm, but fair"...and consistency.  From the very beginning make sure all of your people are clear on what you expect...and do not just depend on contractual stipulations to protect you.   And whereas your expectations should always be for top performance, you should be understanding of extenuating circumstances and human error.  Yet, whatever it is that you expect, you should inspect for it...always, without fail.  Check the details first.  Typically, if your people have given you their attention to the details, then the "big picture" is going to be right and good.  And when you find mistakes, errors and sub-quality work, insist...without fail and consistently...that it be corrected immediately and to the original specs and standards.

Remember, the absolute best people are not those you just hire, but those you develop and retain.            

The following are the evaluation criterias to choose good contractors:-

1) Past completed projects similar to your requirements categorywise and value wise,supported with performance certificates from the employer

2)Progress of works in past projects and feedback from the previous employer.

3) Financial capabilities( Trn over as stated in Audited balance sheets of last 3-5 years)

4) Resources(Manpower)

5) Plants and equipments available with the contractor

6) Bankers Certificate regarding solvency,OD & BG limits.Generally, it is considered that the amount of solvency gets repeated 4 to 5 times in a year.

7) Type & value of Current projects in hand vis-a-vis your requirement.

A very good reference of contractor's evaluation criteria is given in CPWD web site http://cpwd.gov.in/newsitem/dgwman/MAN%20157%20A.pdf

Regards,

Harish 

Make sure everything is in writing on your contract. Insist that the building contractor list every detail of the job to ensure you'll get what you expect. Don't assume that because someone seems like a nice person they will keep their word. Crooks are good actors and actresses. They are professional liars and know how to scam honest people. 

Have the contractor write a date of completion on the contract. Some contractors say they don't like to do so because weather can be unpredictable, but a reasonable date should be determined. Demand a clause that provides refunds if the work is not done in a timely manner. 

Never ever give a contractor more than half down on a job, even if a bank is involved. When it's all said and done, your bank will probably not back you up. When you sign for the loan, you are responsible for seeing that the job is finished. If the contractor walks off, you are more than likely required to pay the loan payment anyway. The bank lent the money to you, and you will be required to pay it back no matter what the contractor does or doesn't do.

Well said Piyush, good answer. Thanks for sharing.