We’ve seen it happen more than a few times—developers get frustrated, fire their GC, and expect things to improve. But the reality? It almost always comes at a higher cost than anticipated.

Firing your general contractor mid-project typically creates more problems than it solves. Replacement contractors require:

  • Higher general conditions
  • Increased profit margins
  • Additional contingency costs
  • Extensive learning curve

New contractors enter projects cautiously, often discovering issues that generate change orders. Reassigning subcontractors and suppliers create further delays and expenses.

Even with urgency, contractor transitions require negotiation, onboarding, and mobilization – significantly extending your timeline.

Better Alternatives

While termination may occasionally be necessary, consider first:

  • Strengthening communication with your existing GC
  • Establishing clearer expectations
  • Developing collaborative solutions
contractor handshake with customer after business meeting start up project contract in construction site office building, business partnership, engineering, cooperate business and teamwork concept

Select the Right Contractor Upfront

The right contractor makes all the difference. Here are a few key considerations every developer should keep in mind to set the project up for success.

Due Diligence:
  • Apply the same rigor as property acquisition
  • Seek professional Construction Management (CM) guidance
Look Beyond Past Performance:
  • Success on one project doesn’t guarantee performance on yours
  • No contractor excels universally across all project types
Price Considerations:
  • Low bids offer false security
  • Only consider pricing after bids have been rigorously scoped and leveled with professional help
Critical Selection Factors:
  • Project type, constraints and goals
  • Market conditions and location
  • Financial stability and cash flow management
  • Current workload and capacity to take on new work
  • Quality of team assigned to your project (Superintendent, PM, Executives)
  • Alignment of buyout strategy with developer goals
  • Track record and ability to sustain growth without sacrificing quality
  • Municipal relationship management experience

This is not an easy process, and you shouldn’t rush this decision based on a contractor’s portfolio highlights. Be sure the contractor understands your vision and works with you to enhance your project’s value.

Ready to get started with a trustworthy CM? Contact Skyler today at (940) 366-2231 for a free consultation and let us help bring your vision to life.