5 Things You Need To Know When Hiring An Industrial Contractor

Planning an industrial build is an exciting time. However, it can also cause a lot of angst, anxiety, and anguish. With so many things to consider, you need a company with experience and a good track record. Maintaining your budget is important, but going with the lowest bid may mean working with an inexperienced team or one willing to cut corners. Finding the right contractor who will do the job reliably is essential.

What Is An Industrial Contractor?

Industrial contractors have various roles from managing demolition and building repairs to relocating industrial facilities and overseeing projects from start to finish. As a specialized type of building, requiring experience and expert training, industrial construction demands a high level of skill. Industrial contractors must excel in multi-tasking, time-management, budgeting, and much more.

Responsibilities range from obtaining permits and licenses to overseeing subcontractors involved in every build and construction project. From planning and development to building construction, a collection of managers, laborers, engineers, and architects are involved. Industrial contractors conduct business in various industries, such as automotive, aerospace, plastics, steel, energy, environmental, manufacturing, agricultural, and heavy industry.

Selecting the right industrial contractor for your project can be overwhelming. The following tips will help in your search to hire the right company for your construction needs.

Tip #1: Ask Around

Business owners who have completed similar projects in your surrounding city can offer a wealth of information. Ask who they worked with and get details about their experience. If their project was one headache after another, you know you can rule out the contractor they hired for your own project. Obtaining first-hand accounts regarding the quality of work and knowledge base of contractor candidates will be invaluable to your search.

You also want to verify credentials. Look for a reputable contractor who has been in business for awhile, who is licensed, registered, and fully insured, with a solid reputation. Check with your local Contractor’s License board or do some research with the Better Business Bureau or your state’s consumer protection agency. Make sure to look into disciplinary history as well.

Tip #2: Conduct an Interview

It’s imperative to interview future hires prior to the start of any project. The only way to truly get a feel for what it will be like working with someone is by conducting a thorough interview. When possible, speak with your potential hiring person. The more questions you ask, the better informed you’ll be, so don’t be afraid to ask a lot of questions. Make sure to inquire about what work will be explicitly done by the contractor or their team and what subcontractors will be responsible for completing.

To gain knowledge about a company’s professionalism, reliability, and availability, ask about the following:

  • if the contractor has taken on projects of your size
  • what similar projects have the contractor completed
  • the number of on-going projects
  • the typical time for completion of a project your size
  • a list of previous clients as references
  • license and insurance information
  • an estimated start date for your project
  • who will run the project through to completion
  • length of time they have worked with their subcontractors
  • if subcontractors are also licensed

Ensure any contractor you interview can adequately answer your questions so you can feel good about moving forward.

Tip #3: Receive Bids

Once you’ve narrowed down your list of options and weeded out any undesirable companies, request bids from your top three contenders. Be wary of a proposal that comes in several thousand dollars below the others. While the lower cost can be tempting, deals that seem too good to be true, usually are.

Lower bids often mean compromises are being made. This can result in cutting corners, using low-quality materials, or requesting more money once the project begins. This can be avoided by knowing what you want to achieve before you receive estimates for a project. When you provide a clearly outlined project description with your expectations, including material use, you will receive a more accurate estimate.

An experienced company will request that engineers draft preliminary drawings, so the contractors understand the full scope of work needed to complete your project and provide an accurate bid.
Do not let price alone determine your choice when hiring an industrial contractor. Compare bid prices to services to determine what may be missing and which offer is the most accurate. Pay particular attention to the details provided on the lowest bid. Ultimately keep in mind communication is vital, and you want to work with a contractor who makes you feel confident they can deliver on their promises.

Tip #4: Permits and Licensing

While the required licenses needed by construction companies and contractors will differ according to location, most projects will require a building permit. Compliance with local building regulations prevent fines that can add costs to your bottom line.

The state of California, for example, requires all industrial contractors who build or modify buildings to be licensed with the state if the job cost exceeds $500. In addition to general license requirements, your business might need other licenses depending on its specialty.

It’s essential that your industrial contractor has a full understanding of permits needed for your project; after all, that’s not your area of expertise. Whether your project is a renovation, involves making ADA improvements, or a custom build from the ground up, having the necessary permits is a must to keep your project on time and on budget.

Obtaining a building permit generally entails:

  • filling out an application
  • creating and submitting a construction site plan and building blueprints
  • setting an appointment with the appropriate authorities for building plan approval
  • scheduling regular inspections during construction
  • obtaining final approval from local building authorities

Furthermore, make sure the industrial contractor is equipped to handle the hazardous environment that goes along with construction. In addition to offering employees adequate insurance, subcontractors on the job need adequate coverage as well. Ask if the company can provide proof of liability insurance and workers’ compensation information. You can also request to review safety training and compliance program certificates.

Tip #5: Written Contracts

The final step in hiring an industrial contractor is signing a contract. Every project, no matter how big or small, needs to be confirmed in writing. Any reputable contractor will require having a signed agreement in place with written estimates at the start of any project. Written contracts will outline the scope of work, time schedules, and payment procedures.

Make sure every detail about the project is stated in your written contract—right down to the make and model of fixtures to be used. Detailed contracts will also mention how disputes will be handled and a time limit for fixing defects.

Insisting on a clearly written contract is the only way to ensure full transparency for project plans and costs.

At the end of the day, who you choose to complete your industrial build is up to you. Keep in mind you will be spending a lot of time with your chosen contractor, so make sure you choose someone you feel you can trust and has the necessary experience and communication skills to complete your project. It’s imperative that everyone involved is clear about the project objectives to achieve the outcome you desire. Otherwise, you could end up disappointed, frustrated, and possibly out several thousands of dollars beyond what you budgeted for.

Turn to Loder Construction

If you’re looking for an industrial contractor you can trust, turn to Loder Construction. We proudly serve the greater Sacramento area as general commercial contractors. Our primary goal is customer satisfaction through superior quality and cost.

Job site safety is a top priority. Loder Construction has developed an approach that allows for Job Site Safety to be observed in every phase of construction regardless of its size and complexity. At the start of every project, all involved parties are required to attend a mandatory safety meeting to outline the peculiarities of the project’s locations and logistics that will affect the safety of the subcontractors and their crew. We follow construction industry standards set by the Occupational Safety and Health Act (OSHA), the National Institute for Occupational Safety and Health (NIOSH), and the American National Standards Institute (ANSI).

What We Build

Loder Construction has worked for a wide range of small and large companies. As general contractors who serve the Sacramento region, our goal is to provide excellence in construction for everyone we do business with.

We’ve developed projects from the ground up as well as enhanced already existing facilities. Some other industry categories we’ve completed projects for include restaurants, bars, and nightclubs, medical and dental practices, outdoor facilities and sports complexes, and office builds. Loder Construction also specializes in building sanitation and cleaning.

Get In Touch

We’d love to hear about your industrial project! We know we can provide top-notch service and deliver your perfect build, but don’t just take our word for it, read our client testimonials for yourself.

To get in touch, please contact us today. We’re eager to help make your business dreams a reality!


JJ Loder

He received his first hammer at 4 years old, not that he wanted one but, because he kept “borrowing” his father’s. Construction has been a part of his life and being raised as a six-generation carpenter, it came naturally. As a boy he visited his father and grandfather on their construction site, and he learned what was being built. High school and college summers were spent soaked in sweat, at the end of broom as his apprentice skills improved. After graduating from Fresno State with a Bachelor of Arts in Communication in 2008, he started running small Tenant Improvements for Loder Construction and excelled in keeping projects on-time and on budget.