Choosing a contractor: look at training, safety record and industry participation.

• Author: Palmer, Rob
• Position: Construction - Brief Article

From time to time, people ask me how to choose a contractor. The answer is simple--hire based upon quality.

A quality contractor will employ well-trained, skilled tradesmen. The best skilled tradesmen are graduates of apprenticeship programs that are approved by the U.S. Department of Labor's Bureau of Apprenticeship and Training. These apprenticeship programs are typically four and five years long and combine classroom instruction with on-the-job training. Graduates of registered apprenticeship programs tend to be more productive workers.

A quality contractor will also invest in continued education for supervisory employees. The construction industry changes dynamically, and a good contractor will keep project managers, superintendents and foremen current on the latest technology and techniques.

A quality contractor has a good safety record. Accidents cost money and time, so a safe contractor is a more productive contractor. Worker's compensation insurance premiums provide a good example of how safety can result in a better bottom line. An important determinant of a firm's worker's comp premium is its experience modification rate, or EMR. The EMR is a positive number above 0.1, based upon a company's safety record, and is a multiplier that is applied toward the premium. The industry average is 1.0, and a company with a better-than-average safety record will have an EMR below 1.0 and a company with a worse-than-average safety record will have an EMR of above 1.0. A company's EMR isn't the only financial measure of a company's safety record, but it is a good start.

The benefits of a safe contractor aren't limited to worker's comp premiums. A workplace accident caused by a careless contractor on your property could result in liability for you, or even worse. injuries to your employees. An owner has much to lose when he or she employs an unsafe contractor.

A quality contractor performs the work you hire him or her to do. Beware of the contractor who subcontracts all or most of the work for which he or she is contracted. A quality contractor assumes reasonable risk for a reasonable cost. Look out for contractors who try to shift all of the risk to the...