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By Tom McGrath, Senior Consultant

When contracting for a large waterproofing or restoration project, you want to be certain the contractor of choice is both technically and financially able to perform the task at hand. Larger and more complicated waterproofing and restoration projects are much more involved than the smaller, quick repair projects.

First and foremost, everyone involved in the bidding process must be on the same page. It is vital to confirm that all bidders are quoting the project from the same specifications. Ideally, you would have a third-party engineering firm supply these engineered specifications (i.e. the exact products, means, and methods to perform the scope; the volume of each; and an array of items specific to the requirements of the scope of work and contract). Alternatively, you may have a preferred vendor establish a "Scope of Work" to be used for quoting by all bidders. For example, EDS provides full building analyses that are comparable to those of a paid consultant. Several property professionals have utilized EDS' building analyses as the basis for the "Scope of Work" they include in their RFP packets.

As a responsible commercial property professional, you certainly want to fulfill your due diligence to a project. Considering the large investment involved, it is extremely important that the restoration and repair contractor is capable of holding up their end of the contract. After all, you would want to be certain a contractor was not up to the challenge beforehand rather than after the project has begun. Consider the following before you award the contract to a vendor:

• Confirm that your contractor is in good standing within the industry and that they have a wide array of industry knowledge and expertise. Ask to see references from projects of a size and scope similar to your project and then investigate to verify that they did indeed deliver as promised.
• Ask to see documentation on their safety and training programs. A reputable company with a good safety and training program will have complete and up-to-date logs on all programs. This shows their organization's commitment to ongoing safety and training in the field. If the contractor is committed to safety, they will be less likely to cause additional liabilities for you.
• Determine their bonding capability. Bonding is a mechanism put into place for a project guaranteeing that all bills associated with the project will be paid and that the contractor will complete the job as specified. This is a strong indicator of the financial strength of the contracting firm. Bonding agencies will only bond companies that are financially strong enough to handle the bonded project. You may also want to ask the contractor for a confidential audited financial statement, to fully confirm their financial strength and capability. 
• I doubt I need to expand on the importance of insurance in this case. The minimum requirements should be in the range of $5 million in general liability insurance. Also make sure that the limits cover the work to be done on your specific project (i.e., EIFS or other environmental issues).
• Entrust your large waterproofing and restoration projects to a contractor who holds a General Contractor's license. These contractors must meet the standards of the governing states in which they are licensed. Regulated testing and reapplication is part of the licensing process. This ensures the licensed contractor has proper knowledge of all applicable codes, standards and has the financial stability required for the class of license held. EDS is licensed as a General Contractor in several states. We are unlimited to the scope of work that can be conducted under the license.
• Determine the products to be used and the warranties covering material and labor that must be obtained. Verify that the contractor has put the warranties in place prior to the start of the project. Hopefully the warranties will not come into play, but they are necessary in the event that something happens during the course of the project.

Large projects must run smoothly to avoid costly mistakes. You want a contractor on board for the long haul, one that will stand by their work now and in the future. If you follow these steps as you evaluate contractors, you will know that you have contracted with clarity and confidence.