Choosing the best contractor for your business is a significant and daunting process. To help you get started, we outlined the best methods to use when choosing the right contractor.

The assessment as well as the selection of a contractor and awarding of construction agreements is an important aspect of the entire construction process. There are primarily three different methods commonly considered optimal for choosing the best contractor for your project.

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1. Competitive Bidding
This is probably the most popular method of selecting a contractor, as it allows for contractors to place their bids for the total cost of the project. However, while this makes it simpler to find the least expensive contractor, it does not necessarily guarantee the highest standards of quality. Therefore, competitive bidding should be paired with a thorough evaluation process and frequent and thorough monitoring and inspection throughout the execution phase.

2. Direct Selection
Direct selection is sometimes known as negotiated contracting2 or sole sourcing. This kind of selection happens by means of a rotation of available contractors who have pre-registered and pre-qualfied for work with a particular company. This method is best used in the case of urgent work that must be completed immediately, eliminating the need for a lengthy contracting and approval cycle.

Likewise, this method might also be used to minimize costs. If a particular contractor is already operating in a specific location, mobilization costs are greatly minimized by selecting the nearest contractor directly. Very often the cost of direct selection is higher than that of a competitive acquisition; however, working with a proven rm can save significant client costs managing and monitoring the work.

3. Serial Tendering
If your project is a very large project with multiple phases, serial tendering is probably the method for you.3 For the first phase, contractors are generally selected via direct selection or competitive bidding, but subsequent phases are awarded to the same contractor only insomuch as that contractor satisfactorily completes all requirements. Should that contractor fail in any parameter, other bids are waiting in the wings. The benefits of this method include uninterrupted work ow and improved cost efficiency through continuity of contractor relations once a quality contractor has been proven.

The incumbent contractor has every incentive to o er the best possible prices on subsequent work in order to maintain his position. Assuming work conditions and client relationship are agreeable, the last thing a contractor wants is to miss out on subsequent phases of a project to a competitor when the work was his to lose.

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