Introduction: Poor Selection Costs – Time, Money and Nerves Whether in construction, IT, events or industry: selecting the right contractor is one of the most critical decisions in any project. Choosing the wrong provider means risking delays, poor performance, budget overruns or even legal disputes. However, many of these problems can be avoided – if you know where the most common pitfalls lie. In this article, we present 10 typical mistakes when selecting contractors – and how to systematically avoid them.
Choosing solely based on the lowest price The mistake: The cheapest bidder automatically gets the job – regardless of experience, creditworthiness or quality. The consequence: Poor execution, additional costs, delays, unreliable communication. How to avoid it: Assess bids holistically – using criteria such as experience, quality, capacity, references and price. A cost-effective contractor is not necessarily the cheapest.
No credit check The mistake: The contractor’s financial stability is not assessed. The consequence: Insolvency during the project, supply issues, unpaid subcontractors. How to avoid it: Check creditworthiness through agencies (e.g. Creditreform, D&B) or request a self-disclosure including current financial figures. Particularly important for large projects.
Failing to check references The mistake: Relying blindly on self-reported information – without independent verification. The consequence: Hiring someone without sufficient or relevant experience. How to avoid it: Ask for concrete reference projects – ideally with contact details of previous clients. Actively reach out and ask about project execution, communication, reliability and results.
Vague scope of work The mistake: The contract is awarded based on vague wording or generic statements. The consequence: Misunderstandings, extra costs due to change orders, legal disputes. How to avoid it: Create a detailed specification or statement of work. Put everything in writing: scope, quality, timelines, payment terms, warranties.
Not verifying qualifications and certifications The mistake: Assuming the contractor “knows what they’re doing”. The consequence: Lack of expertise, unqualified staff, breach of regulations. How to avoid it: Request certificates, trade licences, training records or industry approvals. Essential for safety-critical work (e.g. electrical, structural, IT security).
Ignoring capacity checks The mistake: Hiring a company that is already juggling multiple projects without enough resources. The consequence: Delays, poor responsiveness, missed deadlines. How to avoid it: Clarify early on: How many staff are available? Who is your main contact? How many similar projects are running in parallel?
Ignoring gut feelings during communication The mistake: Overlooking warning signs such as evasive answers, lack of transparency or vague statements – as long as the price is right. The consequence: Poor collaboration, conflicts, loss of trust. How to avoid it: Take your instincts seriously – especially in early discussions. Good contractors communicate openly, clearly and reliably. Uncertainty at the start often means uncertainty throughout the project.
Not putting agreements in writing The mistake: Key terms (e.g. delivery times, payment terms, warranties) are agreed verbally or via email only. The consequence: Disputes, lack of evidence, unclear obligations. How to avoid it: Put all agreements into a formal contract – ideally legally reviewed, or a standard-compliant contract (e.g. JCT in the UK or VOB for Germany). Verbal promises don’t count.
Not checking subcontractors The mistake: The main contractor uses subcontractors the client doesn’t know or cannot verify. The consequence: Quality issues, unclear responsibilities, communication problems. How to avoid it: Request a list of planned subcontractors. Secure the right to reject certain firms. Ask how the main contractor monitors quality and timelines for subcontractors.
No structured selection process The mistake: Decisions are made on the spot, based on gut feeling or personal rapport. The consequence: Wrong choices, lack of transparency, internal disputes. How to avoid it: Use a systematic evaluation matrix – with fixed criteria, weightings and documentation. This ensures transparency – within your team or towards clients.
Tip: Use digital support – e.g. Molphoro.ch Careful contractor selection requires time, expertise and structured processes. If you don’t manage these regularly or feel unsure, digital tools can help. The Swiss platform Molphoro.ch supports you in finding, vetting and comparing contractors – with features such as: Reference checks
Project-specific shortlists
Document overview and compliance control
Digital comparison and tender support
This helps eliminate common issues such as incomplete vetting, lack of comparability or unclear documentation – making the process smoother for developers, architects, investors or project managers.
Conclusion: Mistakes can be avoided – with system and structure Selecting a contractor is not just a formality – it’s a strategic decision that can make or break your project. Knowing and avoiding common mistakes protects you from stress, extra costs and financial risk. With a clear vetting strategy, written documentation, structured comparison and professional support (e.g. through platforms like Molphoro.ch), your selection process becomes secure – and your project starts on solid ground.