Small Is Beautiful: Your Guide to Hiring a Small House Construction Company

Home Improvement

We have gathered the main points for carrying out a contract of 5 very efficient steps that work whether you are building a house or several buildings with zenith homes for example. As a curiosity, the name “bidding,” “competition,” or even “supplier qualification” is often used by companies that recurrently practice this process:

Scope Definition

It is essential to know exactly what will be built with small house construction company for example, with the maximum number of necessary projects available. This will help the construction company assemble the proposal, carry out the work, and make it easier for you to inspect the services.

In addition to the projects, make available basic data such as the area that will be built, a topographic survey, and a good descriptive memorial with the specification of finishes.

Example: “white porcelain tile” can be a very generic term, and it is possible to find manufacturers with prices from R$20/m² to R$100/m² for this covering. Define the manufacturer and model of materials with the designers you hired.

Remember that the more imprecise you are in this step, the more you will compromise at least one factor between cost, time, or quality.

Qualification of Technical Aspects

This step aims to attest to the technical competence of the construction company. At least talk to the customers of the construction company you intend to hire; this is essential. Ask about the relationship and fulfillment of the cost-time-quality tripod.

It’s not enough to talk, enjoy, and visit works similar to yours that the construction company has carried out.

Some companies (and all public bodies) request a document called “certificate of technical collection” (called “CAT”) from the Regional Engineering Council, CREA. They are certificates that the construction company completed the execution of works and services.

Evaluation of Administrative Procedures

With so much diversity of matters under the construction company’s responsibility, it is important for you to understand that it has organized procedures, from the first contact to final delivery.

Establish periodic reports, routine meetings, and checks on compliance with legislation, especially those related to construction employees and two taxes:

ISSQN (taxes on services of any nature): necessary to obtain the “Habite-se,” a document issued by the city hall confirming the completion of the work.

INSS (social security): This will be requested by the property registry office to include the built area in the registration. Without it, you cannot sell the property to someone who needs to finance it.

Check the Company’s Financial Health

Analyze the construction company’s credit by searching for the CNPJ in credit protection services (such as Serasa or SPC) and title offices.

Don’t be ashamed to ask for the CPF of the company’s partners you want to hire and check if they have any pending issues.

Ask for and check the guarantees offered and described in the construction contract. This is an extensive topic, but to summarize, the main ones are:

Contractual retention: This is the partial payment for each measurement of services. For example, the construction company carried out the earthworks estimated at $100,000, and you only pay $95,000, leaving the $5,000 to be paid after the work is completed.

Guarantee: The construction company presents a letter of guarantee from the partners or a bank responsible for fulfilling the contract.

Insurance: works similarly to bail, but the person providing the guarantee is an insurance company.

Contract Quality

A construction contract must be signed, understood, and respected by both parties, especially concerning:

When the work begins and when it ends;

How services will be measured and paid for;

What are the punishments for non-compliance with the contract (both for the construction company and the client);