Ten Most Common Mistakes to Avoid When Hiring a General Contractor

April 2025
CONTRIBUTING EXPERT:
TIMO SCHMITT, TECHNICAL DIRECTOR/DIRECTOR OF OPERATIONS | EIS GENERAL CONTRACTING

Many property owners consider hiring a commercial general contractor to help with a construction or renovation project. A general contractor (GC) coordinates all trades involved, provides centralized project management, and typically serves as a single point of contact throughout the process. This means less organizational effort for the client, clearer management of responsibilities and communication, and on-time completion from a single source.  

However beneficial this model may be, it does come with risks: Choosing the wrong partner or failing to prepare might derail even the most well-planned projects. Here, we outline 10 mistakes made when working with commercial contractors and how to avoid them. 

1. Choosing a General Contractor Without Thorough Vetting  

The biggest mistake often happens at the beginning: choosing the wrong partner. Many clients rely solely on their first impression, but it’s important to pay close attention to the following:  

• References: This will give you the GC’s experience and capabilities.  

• Proposal Documents: A reputable bid should be complete, transparent, and understandable.  

• Pre-contract Engagement: The GC should ask questions and show interest in your RFP, indicating professionalism.  

• Project Organization: Have the GC explain how their team is structured and how the project will be managed, especially regarding capacity, responsibilities, communication, and quality control.  

• Other Factors: Besides costs, consider reliability, communication style, and alignment on project goals.  

2. Basing the Decision Solely on Price  

Choosing a GC based on cost is short-sighted. A low quote might be missing services, materials, or unrealistic assumptions, which can balloon expenses later.  

Always evaluate offers in their full context. Consider the scope of work, quality of planning and execution, project organization, and past references. A realistic and well-thought-out offer might appear more expensive initially but can save you time, money, and stress. 

Key points:  

• Transparent Pricing: Can the GC clearly and logically explain their pricing? A professional GC thinks holistically, identifies unclear or missing items, and accounts for contingencies and project risks.  

• Technical Clarification: Does the GC check if technical details have been coordinated with your design team? Thorough clarification upfront helps avoid surprises and costly change orders later.  

3. Unclear Goals and Lack of Planning  

Successful projects begin with precise requirements, realistic timelines, and well-defined conditions to ensure alignment and avoid unnecessary changes. Define your goals early on. Clearly define responsibilities, interfaces, required permits, and dependencies on other trades or service providers to support accurate scheduling and minimize changes. 

MySpa | Mannheim, Germany | EIS General Contracting

4. Incomplete and Incomparable Bids  

Many projects suffer from RFPs that lack critical information, like details on materials, execution standards, or building physics. This makes it difficult to compare offers and leads to cost overruns or quality issues. Develop your RFP with the help of an experienced GC to ensure thorough documentation. 

Also, keep refining your documents as the project progresses through continuous dialogue with planners, experts, and your GC. Regularly question the materials, services, and standards being used.  

5. Not Vetting Subcontractors  

It’s common for GCs to use subcontractors, but not all GCs know them well. This often results in inconsistent quality and coordination issues.  

What to do:  

• Ask for details about the GC’s network of suppliers and subcontractors.  

• Ask specific questions. What happens if a subcontractor backs out? How is quality ensured?  

• Ensure the GC is contractually responsible for the work of all subcontractors.  

Hans im Gluck | Berlin, Germany | EIS General Contracting

6. Underestimating the Importance of Communication  

Poor communication leads to misunderstandings, frustration, delays, and cost overruns. Clear coordination, documented decisions, and regular site meetings are essential.  

Get to know your project team. Establish clear responsibilities and communication structures, such as weekly site meetings with written minutes. 

Tegut | Witzenhausen, Germany | EIS General Contracting

7. Ignoring Regulations and Permits  

Building without proper permits or ignoring regulations can have serious legal and financial consequences. The GC and client share this responsibility.  

Make sure roles and workflows are clear right away. Clarify who is responsible for submitting applications early, what regulations must be followed, and whether all required technical documentation is complete and current. Clearly defining responsibilities helps avoid delays and miscommunication.  

Especially in complex projects, it’s wise to involve specialists, planners, or your GC early to sort out legal and technical matters. Allocate time and budget for this from the beginning. Regulatory approvals should be planned well in advance, with the relevant authorities brought in early to avoid complications later.  

8. Overlooking Contract Details  

A commercial construction contract is a project's core control instrument. Vague wording, incomplete scopes, or missing provisions for changes can quickly lead to disputes and financial risks.  

What the contract must include:  

• Detailed Scope of Work: All services must be clearly described.  

• Payment Terms: Clear rules for payment schedules, progress payments, and due dates.  

• Change Order Provisions: Define how changes or additional work will be handled. 

• Acceptance and Defects: Agree on processes and deadlines for inspection, claims, and corrective work.  

Trinity Bakery | China | EIS General Contracting

9. Unrealistic Scheduling  

Without a solid and realistic schedule, complex projects quickly run into trouble. A reasonable timeline includes more than the final completion date. It accounts for key milestones, trade dependencies, and delay buffer time.  

Check if the proposed schedule is realistic and whether deadlines are contractually agreed upon. 

Also important is planning the timing of inspections and sign-offs. Who does them, when do they happen, and who’s authorized to make decisions? Define the communication flow clearly to avoid information gaps. Clear interfaces—especially for client-side services or regulatory processes—are key to transparency and progress. 

10. Unclear Responsibility for Defects  

When construction defects arise, the question of who is responsible often causes delays. Without clear contractual rules, this could result in lengthy disputes and slow repairs.  

Our recommendation: Designate the GC as the main point of contact for defect management from the onset. All issues should be reported to them so they can coordinate solutions with all parties involved. A clear division of responsibilities ensures efficient issue resolution regardless of the defect's source. Having the GC handle all relevant tasks reduces complexity and maintains one point of contact.  

It is also critical to maintain a thorough and organized documentation process. Record all defects in writing and with photos, track progress, and maintain a central, unified logbook that serves as the reference point for all parties. A clearly defined defect reporting, tracking, and follow-up process protects everyone involved and keeps the focus on resolution, not blame.  

EIS General Contracting colleagues at our Aschaffenburg office, including Timo Schmitt

Diligence Pays Off  

A successful construction project involves careful planning, defined responsibilities, enforceable rules, and disciplined execution. When these elements are in place, working with a general contractor becomes a key to success, not a risk.  

It’s also worth thinking beyond the current project. Reviewing completed jobs provides valuable insights for future collaborations. Teams that reflect together, learn, and refine their processes create a solid foundation for long-term success. And at the heart of that success lies one simple truth: great construction starts with great communication.  

As general contractors, EIS General Contracting offers full-service solutions for your commercial interior construction in the restaurant, hotel, office, and retail markets. From project planning to production and ongoing support, we customize our services based on your needs and location. Let us know when you’re ready to start your project.

About Elkay Interior Systems

Elkay Interior Systems (EIS) is a tight-knit team of industry-leading designers, commercial-grade manufacturers, innovative engineers, resourceful project managers, and sourcing experts committed to every stage of your project by guaranteeing quality and reliability. We stand out from the crowd with our 40+ years of global experience in the restaurant, hospitality, retail, and education markets. We believe in simplifying the complicated.