Expert: These 5 Signs Reveal a Suspicious Construction Company
According to Kalev Pikaru, the head of P.P. Ehitusjärelevalve, one of Estonia's major construction supervision companies, there are more quality issues with smaller builders and in the case of private homes and apartment renovations, and there are also clear signs that indicate whether a builder is trustworthy.
According to Kalev Pikaru, there are relatively few problems with large and well-known builders – they have strong work culture and poor construction simply doesn't pay off, because afterwards fixing errors becomes more expensive and complicated. "They are responsible for their reputation and guarantee, and poorly skilled workers are quickly sent away from a professional company's construction site. On larger projects, there is also construction supervision, which significantly reduces the occurrence of problems," said Pikaru.
"Risks arising from so-called 'Tiit and Teet' type builders or smaller construction firms hastily put together are encountered more by private home builders and apartment renovators. If things go very badly, the work done sometimes has to be demolished and started from scratch – for example, if improperly installed insulation causes moisture to accumulate or the home simply doesn't stay warm. The daily reality of construction supervision is that the earlier an error or deficiency is detected, the easier and cheaper it is to fix," said Pikaru.
"Before hiring a builder, you should definitely do background work – ask for references about a few projects and sometimes you can even visit the site yourself to see it with your own eyes. It's also worth simply googling the builder and checking the professional register to see if the responsible site manager has the necessary professional certificates that demonstrate skills and quality. If there is suspicion that the builder is working illegally, there is also a labor register where all people working on the construction site must be listed. A clear warning sign is also the builder's tax debt, which you can check for free from the business register," said Pikaru.
"You could also critically evaluate the builder's time planning – if a person doesn't show up on time for the first meetings or if workers are on the site like lunar eclipse, then it's not the handwriting of a professional," added Pikaru.
"A suspicious builder can also be indicated by a significantly lower price than other providers and the fact that they want to settle in cash or ask for a large advance payment before starting work. Rather, payment should be made in stages and based on the record of completed work, and if construction supervision is involved, then after their confirmation of the work. An ordinary customer usually may not be able to understand whether the project was followed and the agreed materials were actually used," noted Pikaru.
"Banks, which issue loans for house construction or apartment building renovation, also understand the risks and often want a three-party agreement in which, in addition to the borrower and the bank, the third party is construction supervision. The bank will not release the next payment to the borrower until the record of completed work is lacking the construction supervision confirmation," added Pikaru.
