Vet a construction employer the way a surety would. Check the public record first, then ask about backlog, how concentrated it is, bonding headroom and why the seat is open. Finish with two calls to subcontractors who have worked for the firm. Whether subs are paid on time tells you most of what you need.

The contractor will call three of your former bosses, verify your degree and ask an owner you worked for whether you returned calls. You will get twenty minutes at the end of the last interview and use ten of them asking about the culture. A construction employer is a business that carries risk on every job it signs, and when you join you carry a share of it: your bonus, your reputation with subs, and sometimes your name on the next project that goes wrong. Twenty minutes is not enough diligence for that.

What can you learn about a construction employer before the first interview?

A good deal, from public sources, in an evening. Licensing boards show whether the license is current and who qualifies it. OSHA publishes inspection history. Industry rankings show revenue and sector mix. None of it needs a login or a favor.

Start with four checks:

  • License status. In states that license contractors, the board’s lookup shows standing, classifications and complaints. California’s license board is a typical example. Texas does not license general contractors at the state level, so in Dallas or Houston you will be looking at city registration instead.
  • Safety record. OSHA lets anyone search inspections and citations by company name. One citation on a large contractor means little. A pattern on the kind of work you would be running means a lot.
  • Size and mix. If the firm appears in the ENR rankings, you can see revenue and how it splits by sector. A contractor that tells you it is a healthcare builder with a sliver of healthcare revenue is telling you about its ambitions.
  • Court records. County and federal dockets show who sues the firm and whom it sues. Subcontractors filing for payment is the entry to look for.

Public records tell you what has already happened. The firm’s background checks on you work the same way, confirming records and nothing about what you controlled on a job. The interview is where you find out what is about to.

Which backlog and bonding questions should you ask a construction employer?

Ask how many months of work are signed, how much of it sits in one or two projects, and how much bonding capacity is unused. A healthy firm answers all three without flinching. Evasion on any of them is worth more to you than the answer would have been.

Backlog concentration is the one candidates miss. Suppose a contractor does $120 million a year and has $90 million of signed backlog. That sounds like nine months of work, which is comfortable. Now suppose $54 million of the $90 million is a single project. If that job slips a season or the owner’s financing stalls, the firm is suddenly short of work, and new hires are the easiest cost to remove.

Backlog at a $120M contractor, and where it sits Bar chart, Backlog at a $120M contractor, and where it sits: Annual revenue $120M, Signed backlog $90M, Backlog in one project $54M. Backlog at a $120M contractor, and where it sits $90 million of backlog looks healthy until $54 million of it turns out to be one job. $0M $50M $100M $150M $200M Annual revenue $120M Signed backlog $90M Backlog in one project $54M Source: Worked example in this section
$90 million of backlog looks healthy until $54 million of it turns out to be one job.

Associated Builders and Contractors publishes a monthly backlog indicator, measured in months, that gives you a national figure to compare against.

QuestionA healthy answerWorth a second look
How many months of backlog are signed?A number, with the caveats volunteered”We’re busier than ever”
How much is in your largest two jobs?A share, and a view on the riskIrritation at the question
How much bonding capacity is unused?Comfortable headroom, and the surety’s name”We don’t really need bonds” from a public-works firm
Why is this seat open?A specific storyThree people in the role in four years
How is the bonus calculated?A written plan you can read”We take care of our people”
Which project would I start on?A named job and a start date”We’ll see what comes in”

Bonding deserves a sentence of explanation if you have spent your career on the operations side. A surety decides how much work a contractor may take on, and it bases that on the balance sheet and on the people. The Treasury keeps the list of approved sureties for federal work. A firm near its limit cannot bid the job you were hired to run. Our note on bonding capacity covers how sureties read a leadership team, and the one on the WIP schedule shows what the numbers reveal.

Even good answers in an interview come from the people who want to hire you. The next source has no stake in your decision.

Who should you call?

Two subcontractors and one person who left. Subs know whether pay applications are approved on time, whether change orders are settled or stalled, and how superintendents treat their crews. A former project manager knows why people leave. Both will tell you if you ask a direct question.

You already know these people or know someone who does. Ask an electrical or mechanical sub in the same metro a single question: would you give this general contractor your best price? A sub’s best number goes to the contractors who pay within terms and manage the schedule. If the answer is a laugh, you have learned how your buyouts will go.

Keep the calls discreet. You are in a confidential process, and so, often, is the firm. The same care applies to what you show in public while you look, which our note on the LinkedIn profile covers.

Signs that should slow you down

  • The role has turned over more than twice in three years and nobody can say why.
  • The offer leans on a bonus with no written plan.
  • You are not allowed to meet the people you would work beside.
  • The firm is entering a sector or a city with no named project behind the move.
  • Subs describe slow pay as normal.

One of these is a question to ask. Three is a pattern.

Selah Talent Partners handles confidential executive search for mandates that cannot be publicly posted, for contractors across the United States. A candidate deserves to know what the recruiter knows about a client, including why the seat is open. If you want that kind of read before your next move, start at the candidates page.

The contractor will finish its diligence on you before it makes the offer. Finish yours on the contractor before you sign it.

Sources and further reading