April fools! Don’t get caught in the deception of a cut-rate contractor
April Fool’s Day is a day for fun and tricks, but you don’t want to be fooled when it comes to the fiber construction contractor you hire.
As BEAD funding rolls out and the demand for connectivity is at an all-time high, more companies are offering fiber construction services. However, not all contractors are created equal.
Jimmy Hall, president of Velox, has decades of experience in telecom. Hall has been involved in every step of telecom projects unfolding at some point in his career, including planning, engineering, procurement, and construction. Not only has he seen the construction side of the industry, but he also previously worked for a utility mapping software company and witnessed multiple issues with cut-rate contractors from the customer side.
With increased funding and much opportunity for growth in the industry, there is more room for companies to find themselves behind on a project due to poor partnerships. It’s critical to partner with the right contractor that has the expertise, knowledge of safety, and relationship-building skills to form a lasting partnership and build a reliable fiber network. Hall explains the difference between an experienced contractor and what’s referred to as a ‘cut-rate’ contractor, or someone who often wins bids strictly because they offer the lowest price in combination with unrealistic promises.
“While cut-rate contractors may offer the lowest price, we’ve had several projects where we were on clean-up duty after they started and failed to complete a project,” says Hall. “They may have the lowest initial price, but time, money and resources are wasted when a second contractor is required to fix the damage done by an unreliable contractor.”
How do you know if a contractor is trustworthy? These tips below will help you evaluate which team to go with and give you some of the background knowledge necessary to choose your contractor wisely:
1. Experience
How many years has the contractor been in the industry, and do they have experience in the specific services your project will require? Make sure they have knowledge of your project’s requirements and can help you determine the most efficient plan of action.
2. Equipment
Is their equipment well-maintained? Equipment used in the field should be properly taken care of and regularly inspected for safety. Make sure the contractor has access to the proper type and size of equipment needed for your project.
3. Price
Have you entertained a realistic budget and considered all the variables involved in your project? Is the price range you’re seeking realistic? Depending on the project, make sure to evaluate that the price is fair for the specific services needed. You could get an oil change for $15, but you wouldn’t want to.
4. Check references
What can previous customers tell you about the services they received from this contractor? Ask for references and do some research on the quality of previous work.
5. Evaluate
Ask the contractor to describe the work they plan to do, rather than assuming they are on the same page as your team. Instead of explaining what they should do, let them tell you and prove their expertise by presenting a realistic plan of action. If it resonates with your ideas, that’s a green flag. If not, beware.
6. Timeline
Does the timeline they promise make sense? If you aren’t sure, you should seek out someone on your team who has the expertise, or you may need to speak with a consultant to ensure the contractor isn’t promising an unrealistic timeline.
7. Compliance and deliverables
How does the contractor actually perform and deliver their services? Pay attention to how they share information and communicate. The contractor should regularly monitor administrative tasks like 811 locate expiration, project due dates and resource loading. Invoices, field details such as redlines, photos, and other supporting documentation should be neatly organized and regularly shared with customers.
8. Internal infrastructure
Does the contractor have the necessary backend office support and field personnel to support your project? How many team members will be working on your project and who will the leaders be? Make sure internal infrastructure is in place for seamless execution of your project.
9. Safety record and certifications
What industry certifications and safety records does the contractor hold? Any certifications like accredited training, 811 certifications, or OSHA 10/30 training is a good sign. Ask for OSHA logs documenting any recent injury reports and their MOD Rate, too.
10. Business certifications and affiliations
What organizations is the contractor affiliated with? Awards or affiliations with groups promoting broadband or safety education show a dedication to continued learning and investment in the industry. It will likely be easier to find references for a contractor that is affiliated with these organizations.
Hall previously worked in an organization where the only focus was price when it came to procurement. While it seemed like money was saved initially, mistakes and poor management from cut-rate contractors led to a negative experience for everyone involved. Much time was spent resolving customer complaints and fixing errors in the network build, and the organization’s management team was overwhelmed and stretched thin dealing with multiple issues as a result of the
contractor.
“Some standards just have to be met for a long-lasting, durable network,” Hall says. “There’s often a desire to get something done as cheap as possible, but people should change their focus to completing a project the most economical way possible for a job well done. We have to take into account market value for the service, and that fiber networks are real assets that will have to be maintained for decades.”
Don’t be fooled by thinking the best contractor for your project is the cheapest! Ultimately, a trustworthy contractor sticks to their price and saves costs in the long run. They save everyone involved from stress, mitigate the chance for problems in construction and setbacks in the timeline, and function as a partner who can guide you through each step of the project. You can’t put a price on peace of mind.
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