The GC Decision Affects Everything Else
For most multifamily developers, the general contractor selection process gets a fraction of the attention it deserves. Site acquisition, financing, and entitlement consume the decision-making bandwidth early. By the time GC selection comes up, the project is often already under schedule pressure — and that’s exactly when bad decisions happen.
In ground-up multifamily, a GC decision doesn’t reveal itself as a mistake until the project is underway, when the cost of fixing it is highest. Inabnet has managed general contracting on multifamily projects across San Diego, Austin, and Tampa long enough to see the same five mistakes play out repeatedly.
Here’s what they are — and why each one costs more than it appears to on paper.
Mistake #1: Selecting on Price Alone
The lowest bid is the most seductive number in any GC evaluation. It lets the developer say they stayed under budget before the project starts. But the lowest bidder is usually the lowest bidder for a reason.
In multifamily construction, the gap between a low-ball bid and actual project cost almost always closes — through change orders, value engineering decisions that trade long-term quality for short-term savings, and subcontractors priced too thin to attract crews that show up reliably. A 3% savings on the GC fee can turn into a 10–15% budget overrun if the GC is undercapitalized or has weak sub relationships in your market.
According to industry guidance on multifamily GC selection, the right evaluation balances cost against financial strength, subcontractor relationships, market experience, and communication track record. Price is one variable, not the deciding one.
Mistake #2: Hiring After the Drawings Are Finished
A GC hired after construction documents are 100% complete inherits every problem baked into those drawings — with no opportunity to fix them. They can flag scope gaps after the fact, but at that point, every correction is either a change order or a design revision that delays permitting.
A GC brought in during design development changes the equation entirely. They can run constructability reviews, flag local material availability and lead time issues, identify permit strategy implications, and close scope gaps before they become RFIs in the field. In markets like Austin where the permitting process runs through eight or more review departments simultaneously, a GC with relationships in those departments can directly affect how your application is received.
Understanding what to expect when working with a multifamily contractor from preconstruction through closeout starts with when you bring them in. Earlier is consistently better.
Mistake #3: Evaluating the GC Without Evaluating Their Subs
A general contractor’s performance is directly tied to the quality and availability of the subcontractors they work with regularly. A GC with deep, long-term sub relationships runs a different job than one who sends generic bid requests to whoever’s available in the market.
The difference shows up in schedule performance. Subs who trust the GC and have worked with them on multiple projects mobilize faster, solve scope conflicts more collaboratively, and don’t dispute every clarification. Subs brought in cold to a GC’s job often behave differently.
Ask any GC you’re evaluating to name their primary subcontractors — structural, MEP, concrete — in your specific market, and explain the working relationship. If they can’t answer with specific names and project history, that’s a gap worth investigating. This evaluation is a core part of the pre-construction due diligence process that experienced developers run before selecting a GC.
Mistake #4: Skipping Financial Due Diligence on the GC
Most developers ask for a GC’s portfolio and references. Fewer check their financial capacity — and for a 100-unit ground-up project, that’s a meaningful gap.
A GC managing a large project needs sufficient working capital to fund operations between loan draws, carry sub payments that keep the schedule moving, and absorb unexpected costs without stopping work. Construction lenders require GCs to carry surety bonds for exactly this reason: if a GC’s financial position deteriorates mid-project, the bond provides a mechanism for completion. But developers often skip the pre-hiring version of this check entirely.
Before hiring, ask for evidence of current bonding capacity and information about the GC’s active pipeline. A GC already fully loaded with other projects takes on your job with less margin and less management attention than they’ll indicate during the interview. Not all GCs are equipped the same way for large multifamily projects — and financial capacity is one of the clearest differentiators.
Mistake #5: Doing Reference Checks the Wrong Way
Every GC gives you the three references they’ve already prepared. These clients know they’re on the list. Their responses are already optimized.
The useful reference check happens elsewhere. Find the GC’s past projects through city permit records, their own portfolio page, or local development community contacts. Reach those clients directly — without going through the GC. Ask specific questions: not “were you satisfied” but “did they hit the original schedule,” “how did they handle the first disputed change order,” and “would you hire them again for the same project size on the same timeline.”
The delta between what prepared references say and what independent contacts say tells you more about a GC than almost anything else in the evaluation process. Developers navigating this due diligence can review the multifamily construction FAQs and look at how Inabnet’s approach to contractor selection in San Diego applies across markets.
What Developers Who Get This Right Actually Do
Developers who consistently hire the right GC share the same habits. They start the search early — during schematic or design development, before drawings are complete. They evaluate three to five GCs and go beyond the bid to compare sub relationships, financial position, schedule track record, and market familiarity.
They also look at the GC’s track record in the specific market. A GC who has delivered 10 projects in San Diego brings permit relationships, subcontractor familiarity, and local knowledge that a GC entering the market for the first time simply doesn’t have. The same logic applies in Austin and Tampa.
Inabnet’s approach to multifamily construction consulting builds the GC evaluation framework into every project from the start. Developers who work with Inabnet don’t make these five mistakes because the evaluation structure prevents them before the first GC conversation happens.
Frequently Asked Questions About Hiring a GC for Multifamily
When should I start looking for a GC for a multifamily project?
Start the search during design development — before construction documents are complete. For large projects, this means beginning 12–18 months before your target groundbreak. Quality GCs in active markets like San Diego, Austin, and Tampa are typically booked 9–12 months out already.
How many bids should I get for a ground-up multifamily project?
Three to five competing bids is a reasonable floor. The goal isn’t just price competition — it’s having enough respondents to compare subcontractor relationships, preconstruction approach, and financial capacity side by side. Fewer than three limits what you can learn from the process.
What should I look for in a GC’s track record for multifamily?
Look for completed projects of similar scale and type in the same market. Ask specifically about schedule performance, not just whether the project was delivered. A GC who completed a 100-unit building four months late still “delivered” — but the carrying cost, lender relationship, and lease-up implications matter for your project economics.
Can Inabnet serve as GC on my next multifamily project?
Yes. Inabnet provides full general contracting services on ground-up multifamily projects across San Diego, Austin, and Tampa. We work with developers from preconstruction through final inspection — and we have a direct stake in hitting the schedule.
Ready to Get Started?
If you’re in site selection or early design on your next multifamily project, the time to start evaluating your GC is now — not when drawings are done. Inabnet works with developers from the ground up across San Diego, Austin, and Tampa.
Talk to Inabnet’s team or call us at (833) 390-4602.