Frequently Asked Questions
General
- How long have you been in business?
- How big is your company?
- Where do you work?
- What kind of work do you focus on?
Design
- Can you help with design, plans and permits?
- What if we have an architect already?
- Can you help with materials and finishes?
Estimating
- Do you competitively bid jobs?
- What is the negotiated contract process?
- What are pre-construction services?
- How much will the work cost?
- Will I get the best price with HGC Inc.?
Contracts and Payments
Production
General
How long have you been in business?
John Hanson started as a sole proprietor in 1987. Chris Hanson became a partner in 1992. We then purchased our building at 214 Kalos St. in Philadelphia’s Wissahickon neighborhood, in 1995 and incorporated as Hanson General Contracting, Inc. in 1998.
How big is your company?
We currently have a field staff of seven. Each job we do is staffed by a production manager and a lead carpenter, both of whom remain with the project from start to finish. This ensures close attention to detail and a continuity of professional management throughout the entire process.
Where do you work?
Our core working region includes all areas of center-city Philadelphia, Mt. Airy, and Chestnut Hill as well as the Main Line and portions of the northern and southern suburbs. We occasionally travel further if our work schedule allows.
What kind of work do you focus on?
We prefer high-end design projects in new construction, renovation, and historic preservation. But the most important factor leading to the success of a project comes from the people involved. In short, projects go best when we and our clients share a common vision, responsiveness, and respect.
Design
Can you help with design, plans and permits?
We do not currently have an architect on staff but have a number of sources for referral. We do, however, have the capability to provide some drafting and design support.
What if we have an architect already?
We are always interested in meeting new designers and architects. We prefer to be involved early in the process so we can consult on design and costs in order to keep the project within budget and on track.
Can you help with materials and finishes?
Yes. We have some of our own product literature as well as contacts in a number of showrooms in the area who can help with material selection. Also we know which products have performed well for our clients in the past and can help ensure that all materials work within the design and budget.
Estimating
Do you competitively bid jobs?
No, we prefer to negotiate contracts with Owners. We provide cost analysis once we are the preferred contractor for the job rather than offer free bids on speculation. Detailed estimating can take a significant amount of time and is a process we like to reserve for clients who share in a mutual commitment with us.
What is the negotiated contract process?
A negotiated contract means that from the outset we work with the Owner to develop a project. On large projects, we work closely with the architect or designer as well. After an initial telephone conversation, an appointment is made to review the project. At that meeting we have a thorough discussion about the full scope of work and the timeframe of the project. We do not charge for this initial meeting. If the decision is made for us to proceed together, we then begin the pre-construction process and services.
What are pre-construction services?
These services include design, estimating and scheduling, suggestions on materials and methods, subcontractor identification, staging, and more. Although we typically do not charge for theses services, we do ask for a retainer at this time, which will eventually become part of the overall construction budget.
How much will the work cost?
We provide estimates for all costs of our work. Much of it is fixed price, meaning that we negotiate a fixed contract amount with the client before starting a job. Some projects are better suited for the "time and materials" method, in which we charge by the hour, plus a fee. Typical rates are $40-60 per hour with a 20% markup on all outside labor, subcontractors, and materials.
Will I get the best price with HGC Inc.?
We may not always be the least expensive contractor. But, more importantly, we focus on helping our clients get the best value for what they order. As we understand the priorities, we fine-tune our recommendations regarding subcontractors, materials, and methods to help our clients and their designers realize the highest satisfaction for their budget.
Contracts and Payments
What type of contract do you use?
On small projects (under $15,000) we typically write a detailed proposal to outline the agreement and then ask the Owner to simply sign the document. On larger projects, we use official AIA contracts.
What is a typical payment schedule?
We invoice every two weeks for work that has been completed within the last payment period. On fixed-price jobs, we provide a detailed listing in each job category and the percentage complete to date. Time and Materials invoices provide details on all labor subcontractors, materials, and fees for the billing period. Since we invoice for work that has already been completed, we ask for payment within five days of the date of the invoice.
What about change orders?
On fixed-price jobs, change orders occur when the Owner requests a change in the scope of work. We use our accounting system (Intuit®reg; Master Builder™) to generate a written change order for each change, which then must be approved in writing by the Owner before it becomes binding.
Production
How many jobs do you manage simultaneously?
We typically have five or more jobs open at any one time. Our office management provides support, but the day-to-day details are coordinated at the site by our project leads to ensure smooth workflow throughout each project.
Do you subcontract some of the work?
We subcontract most of our specialized work-concrete and masonry, plumbing, mechanical and electrical, etc. This saves our clients time and money since we do not retain in-house expertise or equipment from all the best specialists. But we work very closely with our subcontractors and have been associated with most of them for many years.
What are allowances?
For areas of the project such as finish materials and fixtures, or subcontracts that do not have the full scope figured out at the time the contract is signed, allowances are established and standards are provided to allow the project to proceed while this information is being developed. This amount is included in the contract total and adjusted up or down based upon the actual costs accrued. Credits or additional charges are issued at this time using a change order.
Who will build my project?
Early in the process, we identify which of our project leads will make the best fit for your job. We arrange a pre-construction conference prior to the start date to give an opportunity for you to meet and go over any outstanding details.
How long will the job take?
We provide computerized schedules for virtually every job we undertake. These schedules list each item in the scope of work, from site protection to punch list, with corresponding dates.
How do I find out more?
Please feel free call us anytime at 215-483-8338 or send an e-mail at info@hgcinc.biz. We have references available upon requests for all seriously interested parties. And if you would like to see some of our projects, we would be happy to arrange a job tour.