6 Ways to Protect Your Church Renovation Project from Disrepair

The most important part of any church renovation project happens long before the groundbreaking ceremony. The actions you take when choosing a builder or contractor can help prevent hassles and headaches down the road. You will want to work with a company with the proven ability to complete your project on time and within budget. Consider six ways to protect your construction project from poor craftsmanship, financial losses and long delays.

1. Evaluate the Need for a Builder vs. Contractor

The size and complexity of your project can help determine whether a builder or contractor is the better fit.

Working with a Builder

If the project is large, such as a new sanctuary or educational wing, consider working with a builder or architectural firm experienced in church construction. The firm will design your project and, if needed, assign a construction manager who will help ensure timely project completion. The builder will act as the liaison between you and the workers and will oversee essential functions such as:

• Hiring a general contractor and subcontractors
• Buying materials
• Ensuring compliance with local zoning ordinances
• Obtaining proper permits
• Miscellaneous project details

Working with a Contractor

For smaller projects, such as remodeling an existing space, a church may choose to hire a general contractor. The general contractor’s responsibilities are similar to those of a construction manager, but the contractor will report directly to the church. This will require the church to appoint a staff member responsible for the building process.

2. Check References

The best way to verify a company’s performance is to check references.

• Check their standing: Investigate the company’s reputation by checking with the Better Business Bureau^® and other business rating agencies to see if the contractor has received complaints.
• Verify licenses: Your local building contractors’ association and city and state building regulators can tell you what licenses your contractor should hold.
• Look for experience: The more years of experience the contractor has, the better.
• Seek examples: Find out how many jobs the contractor has completed like yours.
• Get references: Call at least three previous clients who’ve had similar work done and ask specific questions, such as:
  • Was the project completed on schedule?
  • Was it completed within budget?
  • Were there problems, and how were they handled?
  • Were you pleased with the overall results?

3. Get Bids for Your Church Construction Project

The bidding process helps you find the best price as a steward of your church’s finances.

• Narrow down your list of contractors to the top three.
• Create a list of specifications.
• Ask each contractor to bid on the same specifications.
• Compare bids, keeping in mind that the lowest bid isn’t always the best. It might entail lower-quality materials or less extensive work.
• Consider bonding the project. A bond ensures contractors are financially prepared to assume responsibility if they cannot complete the job. Never proceed with contractors who are unable or unwilling to support the work financially.

4. Confirm Insurance

If your contractor doesn’t carry proper insurance, you could be liable for injuries or property damage caused by the contractor’s negligence. Confirm that the contractor you’ve selected carries adequate insurance for:

• Workers’ compensation
• Vehicle
• Liability

Require the general contractor and each subcontractor to furnish a Certificate of Insurance (COI) verifying that all workers are properly insured. In addition, you or the contractor should carry builders’ risk insurance to cover damage to the structure or materials during construction.

5. Get an Agreement in Writing

Any agreement you make with your contractor should be in writing. Requiring a written contract will help ensure that your church renovation project will be completed with the desired results, the time frame specified and the price range your church has agreed to pay.

The contract should include:

• A description of the work to be performed
• A work schedule
• A payment schedule
• Warranty information
• A statement of permits
• A statement of insurance and bonds
• An arbitration or mediation clause
• Copies of the architectural plans or drawings, including the dimensions
• A complete list of building specifications clearly identifying the products and materials to be used.

6. Review Before Signing

The contract language may ask you to indemnify, defend and hold a contractor harmless for injuries or damages that might happen during construction, even if the contractor’s negligence caused them. Don’t hesitate to question any terms in the contract; failing to do so could have costly consequences. Have an attorney review the document and explain anything you don’t understand before you sign it.

Build a Strong Risk Mitigation Plan

Whether you’re managing church renovations, a VBS program or theft prevention, we’re here to help. At GuideStone^®, we come alongside you to help you understand property and casualty insurance and protect your ministry. For more information, contact us at InsuranceSolutions@GuideStone.org or (214) 720-2868, Monday through Thursday, from 7 a.m. to 4:30 p.m. CT and Friday, from 7 a.m. to 4 p.m. CT.

This article is for informational purposes only. It is not intended to be construed as legal advice. Readers should use this article as a tool, along with best judgment and any terms or conditions that apply, to determine appropriate policies and procedures for your church's risk management program.