Tips on Choosing the Right Construction Company
Anytime you want to choose a service provider, you always find some instance of decision making a little difficult. When it comes to picking on a construction company in Kisumu or anywhere to do your work, there are some few considerations which you must look into in order to make the right decision. There are so many construction companies in any region, both individuals and companies who will be interested in serving you. So, what should you use to make the decision on which company you should engage in your project?
Here are some of the tips of choosing the right construction company in Kisumu or in deed any region of your interest.
Good Work Relationship
A good construction company should be one which has established a good working relationship with all key players in a construction site. Key players like engineers, architectures, planners, plumbers and many others. A construction company with good work relationship with these key players will always get the best service and advice from them. The end result of any work will always be great and satisfactory to the client first and then to company.
Fast Spot-on service
A good construction company is one which offer service within a reasonable timeline, no delay and also not so fast that the quality of the work is compromised. You should be able to interrogate a company on its timeline to understand them and see sense in those timeline.
Do you have a plan for your house or you need help? Many customers find themselves with no pan and will rely on construction companies to come up with a plan for them. This is a good challenge which a good construction company should embrace. They should have at least some approved plans which clients can consider using or developing. It’s no sin to lack one but just to show level of preparedness, having a few plans is always a good idea.
A construction company should be equipped with skills and manpower to handle or manage various unseen eventualities like natural disaster or as a result of weather pattern. There are times that it can rain too much and work is temporarily suspended. A construction company should be able to manage the situation and ensure no losses occur as a result of that temporal stoppage.
A construction company should also show experience either a company or through the personnel the company is deploying in doing the actual construction work. A real estate development will definitely come out nice if some
A legitimate company should have some license or several of them to show that they are able to perform a construction work. There are law enforcement bodies that a construction company must register with in order to be allowed to carry out any construction work. For example,
You should be able to evaluate Construction Company and see if they can do the work. One way of evaluation is to see the past projects the company or its personnel have to completed. You should also look at their standards of work and compare to what the market offers. This will give you the peace of mind that you can trust a construction company with your work.
Engineering and Architectural Services
A good construction company should have its own architecture who is able to offer any architectural work needed by a client. It’s also important that engineering services be part of what a real estate development company offers because of the engineering needs in a construction site. Engineers can offer a valuable piece of information which could prove very important.
Real estate developer companies make it easier for customers or clients who need help with financing. There are some clients who want to rely on construction company ability to secure funding for them to give out work. This is a common thing expected by customers. There are also customers who will come with all the funding you need to do their project.
A good property developer company should be able to establish clear timelines for construction completion with clear phases indicated. These timelines will help you make a lot of planning in terms of funding, quality of work and availability to supervise work. Each job will require its own timeline with clear milestones set within the timeline.
These tips above are some of the tips which could help you pick on a good construction company for your project. Whether you want a construction company in Kisumu, Nairobi or anywhere, these tips will help you a great deal.
How to finance a construction project?
It’s good to mention to our readers that a construction company can help you secure funding for your project but it’s also important to understand ways of financing your project.
Financing a construction project can be done using equity or debt capital as is the case for other business. Equity capital is simply the amount of money you inject in a company as the owner. Any other money you borrow or receive from other sources which you will return is categorized as debt capital and loans is part of debt capital.
So let’s look at various sources of loans or funding for a construction project.
a) Commercial Loans
Commercial loans are offered by financial institutions mainly banks. Saccos and
The terms of commercial loans vary depending on its title and objectives as well as the repayment period. A secured commercial loan like asset financing is normally cheaper as the asset is used as collateral for the loan.
The terms will require
b) Line of Credit
This work more like a credit card where you have some maximum limit which you can borrow and return without interest within a certain period of time. The main setback with this type of financing is that the credit limit is usually very minimal and may not help much is big projects.
You can explore and find out the kind of credit link a bank can extend to you based on your financial transactions or income and expenditures. The period of the credit limit is also important so that you can plan and repay then take another credit.
c) Alternate Lending
You can find sources of financing from non-banking financial institutions like SACCOs and micro-finance institutions. There are also some unregulated individuals who
You can research these
d) Revenue-Based Financing
This refers to selling a percentage of future revenue in exchange for funding. It’s not a typical loan though the money is advanced as a lump sum to you. If you make a sales of Kenya Shillings two million a month, then a fraction of that sales will be taken to repay the advanced cash until its fully paid plus associated interests.
To get this funding, you need to show the future incomes and also clearly indicate what activity you want to use this funds in. This will help convince the financier of its viability or the worth of such project.
If you want to know more about a construction company in Kisumu, you should click on West Kenya Real Estate website.