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Scoring Your Contractors

How does someone find out whether or not a contractor they’re interviewing is truly financially stable? Glenn Mattenson established Contractor Score LLC for this very reason. A Contractor Score, as phrased by Glenn, is like a “consumer credit score” for contractors; it can give owners, developers, and general contractors peace of mind that their construction partners are stable enough to make their projects successful.

Dodging Delays
One of the benefits in working with financially-strong contractors is that the overall project tends to run more smoothly. They don’t have issues with the schedule falling behind due to lack of funds or resources. Knowing that delays can turn into additional dollar signs on the overall project cost, owners and developers are turning to Contractor Score for more insight into the strength of their partners before signing any commitments.

What’s in a Score
The score is on a numbered scale with the range being from 0 to 2,500. It is a testament to how stable the contractor is for a short-term basis based on factors including liquidity, leverage, and profitability.

Liquidity is the most important and is based on whether or not the company can fund the short term of the project. Leverage is determined by the debt vs. equity and a number of other factors, which allows them to borrow money more easily in case of an emergency. Although revenue is important, it is the profitability of a company that gives it financial strength.

While nothing is a guarantee, scoring contractors can give owners and developers a confidence boost in their next construction partner. To meet this growing trend many companies now offer scoring services.
A client recently requested that MW Builders obtain a Contractor Score. We were pleased to discover that we hold a score of 2,500, the highest possible.