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How to Assess a Contractor's Experience and Capacity Before Awarding a Contract

A good price is worthless if the contractor cannot deliver. How to check experience, people, equipment and money before you sign.

Quarry site in Kaduna, Nigeria, with heavy machinery working on stone excavation.
Photo: LekePOV / Pexels
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To assess a contractor's experience and capacity, check five things: similar projects they have finished (type, size and recent), what past clients say, the qualified staff they will put on your project, the equipment they own or can reliably hire, and whether their finances and current workload leave room for your job. Then visit one of their live sites. Experience tells you they have done this kind of work before. Capacity tells you they can do it now, alongside everything else they are building. You need both.

Why experience and capacity matter

Most failed projects we hear about had a contractor who could build, but not that building, at that size, at that time. Common stories:

  • A house builder takes on a three-storey office and struggles with the structure.
  • A contractor wins three tenders in one month and runs short of staff and cash.
  • A firm with no equipment waits weeks for hired machines.

Checking before award avoids most of this.

1. Similar completed projects

Ask for a list of projects completed in the last five to ten years, with:

  • The client and a contact person.
  • Type of work (school, office, bank branch, road, drainage).
  • Contract value and size.
  • Start and completion dates, planned and actual.

Look for at least two or three projects similar in type and size to yours. A contractor who has built bank branches understands security, strongrooms and fit-out. One who has built roads understands compaction and drainage. See our own project list as an example of what to ask for.

2. References that you actually call

Call two or three past clients and ask:

  • Did they finish on time? If not, why?
  • How was quality? Any defects after handover?
  • Did they handle problems well?
  • Were there many claims for extras?
  • Would you hire them again?

The last question is the most revealing.

Group of male construction workers on site wearing safety gear during daytime.
Ask who will actually run your site, not just who runs the company. Photo: Mad Knoxx Deluxe / Pexels

3. The people who will run your project

The company's experience matters less than the team you will get. Ask for:

  • The site engineer or site agent's CV and registration.
  • The project manager and QS who will handle your job.
  • Key foremen and their experience.
  • A commitment that these people will stay on your project.

For public tenders, key staff are often scored. Our tender documents checklist lists what is usually asked.

4. Equipment

Match equipment to the job:

Project typeTypical equipment
BuildingsConcrete mixers, poker vibrators, scaffolding, props, formwork, hoists
RoadsGraders, rollers, tipper trucks, excavators, water bowsers
Drainage and civil worksExcavators, compactors, dewatering pumps

Owned equipment is not required, but reliable access is. Ask for a list with evidence of ownership or lease agreements.

5. Financial strength

A contractor needs cash to buy materials and pay workers before your first payment arrives. Check:

  • Audited accounts for the last two or three years.
  • Annual turnover compared with your contract value.
  • Access to bank credit.
  • Ability to provide performance and advance payment guarantees.

As a rule of thumb, be cautious if your project is larger than the contractor's average annual turnover. Our article on cash flow for construction companies explains why cash is so often the problem.

6. Current workload

Ask what they are building now and when each job ends. A firm with too much work spreads its best people thin. A firm with no current work at all may be struggling.

Two architects wearing face masks and hard hats review building plans indoors, ensuring safety.
A site visit tells you more than a company profile. Photo: Thirdman / Pexels

7. Registration and compliance

8. Visit a live site

A 30-minute visit to one of their sites shows a lot: is it organised and safe? Are materials stored properly? Is there an engineer on site? Is work neat? Do workers have protective gear?

Score it, do not guess

For larger projects, use a simple scoring sheet: experience 30 percent, key staff 25 percent, equipment 15 percent, finance 15 percent, references and site visit 15 percent. It makes comparisons fair and gives you a record of why you chose.

Questions to ask at a contractor interview

For larger contracts, invite the top two or three bidders to a short meeting. Useful questions:

  1. Who will be the site engineer, and what similar projects have they run?
  2. What do you see as the biggest risks on this project, and how will you handle them?
  3. Which parts of the work will you subcontract, and to whom?
  4. Where will your materials come from, and what are the lead times?
  5. How will you keep the site safe and tidy?
  6. What other projects will run at the same time as ours?
  7. Can you walk us through your programme?

Listen for specific answers. A contractor who has really studied your drawings talks about your site, not about construction in general.

Joint ventures and subcontractors

A smaller firm sometimes teams up with a larger one, or relies on specialist subcontractors for lifts, aluminium or electrical works. That can work well. Check the experience and capacity of each partner, who leads the joint venture, and who carries responsibility if a subcontractor fails. The main contractor stays responsible to you for the whole job.

Frequently asked questions

How many similar projects should a contractor have?

Two or three of similar type and size in recent years is a reasonable minimum for most building projects.

Is a bigger contractor always better?

No. Very large firms may give a small job to their least experienced team. Choose a contractor for whom your project is important but not too big.

What if a new contractor has no experience?

They can start on smaller jobs or work as a subcontractor or joint venture partner with an established firm. For important projects, experience should weigh heavily.

Should I check the contractor's finances?

Yes, for any significant project. Money problems are a leading cause of abandoned sites.

Looking for an experienced contractor?

Vika Construction has delivered bank branches, regional offices and civil works across Tanzania. See our projects and services, or contact us.

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