Your first meeting with a project manager sets the tone for your entire build. Getting the right information upfront prevents costly miscommunications, scope creep, and timeline slippage down the line. Here's what you need to cover.
Establish Budget and Financing
Be direct about your total project budget—not just construction costs, but contingency, permits, and inspections included. Ask your PM how they typically handle contingencies (most recommend 10–15% for residential, 15–20% for commercial work). Clarify whether your quoted price is fixed or subject to change orders, and if so, what triggers those changes.
Discuss payment schedules. Standard practice in construction is 10% upfront, then draws tied to completion milestones (foundation, framing, mechanicals, final). Ask for a detailed payment schedule so you know exactly when money is due and what work should be complete at each stage.
Timeline and Project Phases
Ask for a realistic timeline from contract signing to final walkthrough. Residential projects typically take 3–6 months; commercial or complex builds take longer. Request a phase breakdown: when does excavation start, when is framing complete, when are inspections scheduled?
Discuss seasonal factors affecting your build. Winter concrete work, rainy-season site conditions, and permit wait times all impact timelines. A good PM factors these in rather than giving you an optimistic timeline that slips.
Permitting and Regulatory Compliance
Don't assume your PM handles permits. Clarify who's responsible for pulling them, paying permit fees, and scheduling inspections. Permit costs range from 2–5% of project cost depending on your jurisdiction, and they typically take 2–8 weeks to obtain.
Ask which inspections are required (foundation, framing, mechanical, electrical, final). Confirm who schedules them and how delays are handled if an inspector finds non-compliant work.
Insurance, Licensing, and Bonding
Request proof of:
- Current contractor's license (verify the number with your state board)
- General liability insurance (minimum $1M coverage)
- Workers' compensation insurance
- A payment bond (protects you if the PM fails to pay subcontractors)
Ask for references from similar projects—ideally 2–3 completed residential or commercial builds of comparable size and complexity. Contact them directly; don't rely solely on the PM's word.
Scope of Work and Change Orders
Review the detailed scope of work together. Specify exactly what's included: materials, finishes, labor, cleanup. Define what's excluded. Ambiguous scopes create disputes.
Establish a process for change orders in advance. How much notice must you give? What's the approval process? How long does a change order take to price out? Most PMs charge 10–15% markup on change order materials and labor, so understand this before work starts.
Communication and Reporting
How often will you hear from your PM? Weekly site visits and progress reports are standard. Clarify the communication channel—phone, email, text, a project management platform. Ask who your point of contact is if the PM is unavailable.
Discuss how issues are escalated. If a problem arises on-site, who decides the solution and how quickly?
Subcontractors and Warranty
Ask how the PM vets and manages subcontractors. What's their track record working with the subs they'll use? Are they bonded?
Clarify warranty coverage: what does the PM warrant (workmanship, materials)? For how long? What about warranties from material suppliers and subs? Get warranties in writing.
Final Walkthrough and Closeout
Discuss the final inspection process. Who prepares the punch list (minor incomplete items)? What's the timeline for completing punch list items before final payment? Will you walk through together?
Ask about documentation you'll receive at closeout: as-built drawings, warranties, manuals for appliances and systems, copies of permits and inspection reports.
Frequently Asked Questions
Q: How much should I expect to spend on contingency, and what happens to unused funds? A: Most GCs recommend setting aside 10–20% of the hard costs in contingency. Any unused contingency typically belongs to you, but confirm this in your contract—some PMs treat it differently.
Q: What's a red flag if a PM quotes a timeline that seems too short? A: If they're promising a residential build in under 12 weeks without explanation of how, or they're vague about permit and inspection timelines, they may be underestimating complexity or rushing quality.
Q: Can I make mid-project changes without huge delays? A: Minor changes can usually be absorbed within a week or two, but significant scope changes require new timelines and often cost more due to scheduling conflicts and subcontractor availability.
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