Hiring the wrong TI contractor can leave you with budget overruns, timeline delays, and a space that doesn't match your vision. The stakes are high—tenant improvements typically cost $50–$200+ per square foot depending on scope, and a poorly managed project can derail your business launch or expansion. Asking the right questions upfront protects your investment and sets clear expectations.
Verify Licenses, Insurance, and Experience
Before anything else, confirm the contractor holds a valid general contractor license in your state and carries current liability insurance and workers' compensation coverage. Ask for their license number and call your state's licensing board to verify it's active and free of complaints. For a TI project, you want someone with at least 5–10 years of experience specifically in tenant improvements, not just residential remodeling or new construction—the skill sets differ significantly.
Request references from at least three recent projects similar in scope and industry to yours. Call those clients directly and ask whether the contractor stayed on budget, met deadlines, and handled unexpected conditions professionally.
Understand the Scope and Scope Creep Prevention
Ask the contractor how they define the scope of work and what happens if requirements change mid-project. A solid TI contractor will provide a detailed scope document that lists every element—HVAC modifications, electrical upgrades, flooring, partition walls, permits, inspections—and specifies what's included and what's not. Vague scope statements lead to disputes when you want "just one more outlet" added or walls moved slightly.
Clarify how change orders are handled. Do they require written approval before work begins? What's their typical markup on change order labor and materials? Understanding this prevents sticker shock if you need adjustments.
Pricing and Contract Terms
Request a fixed-price bid in writing. For TI work, fixed-price contracts are standard and protect both parties. If the contractor insists on time-and-materials, that's a red flag—TI projects benefit from defined budgets.
Ask whether the bid includes:
- Permit acquisition and plan review
- General contractor overhead and profit
- Contingency for unforeseen conditions (typically 5–10%)
- Cleanup and final disposal
- Temporary utilities during construction
Compare at least two or three detailed bids side by side. The cheapest option often cuts corners on quality or timelines. Mercoly makes this comparison easier by letting you find and evaluate multiple trusted TI contractors in one place, so you can see apples-to-apples pricing and track records.
Timeline and Coordination
Ask for a detailed schedule with start date, key milestones, and expected completion. How long does permitting typically take in your jurisdiction? Is that included in their timeline estimate? A realistic TI project on 5,000 square feet might take 12–20 weeks depending on complexity and permit timing.
Discuss how they coordinate with landlords, building managers, and other trades. Will they handle utility shut-offs and reconnections, or is that your responsibility? Who manages inspections with the city or landlord? Clarity here prevents communication breakdowns.
Contingency Planning
Ask what happens if they encounter unforeseen conditions—asbestos, hidden structural damage, outdated electrical systems. Do they have a process for documenting surprises, notifying you, and issuing a change order? This is especially important in older buildings where surprises are common.
Also ask about their insurance deductible and whether they self-insure contingencies or pass costs to you. Understanding their risk management approach matters.
Permit and Code Compliance
Confirm the contractor will pull all necessary permits and ensure the work passes final inspection. Some states require specific licensing for mechanical or electrical work—they should hire licensed subcontractors as needed. Ask for proof of final inspections and certificates of occupancy (or partial CO if applicable) before paying final invoices.
Frequently Asked Questions
Q: How much should I budget for contingency on a TI project? Most contractors recommend 5–10% of the total project cost held in reserve for unforeseen conditions like code violations, structural repairs, or design changes discovered during construction.
Q: What's the typical timeline for permits in a TI project? Standard building permits usually take 2–6 weeks depending on your city and project complexity; some municipalities are faster, others slower—ask your contractor about local averages before locking in a completion date.
Q: Should I hire the contractor's subcontractors, or can I hire my own? Most GCs insist on managing all subcontractors to maintain responsibility and coordination; hiring your own trades often voids their warranty and creates accountability gaps, so ask whether that's negotiable before signing.
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