The lowest commercial construction bid is not always the best in a bidding process, because price is just one factor—and not always the most important one—when selecting a contractor. Here’s why:
Quality May Be Compromised
Low bids often cut corners on labor, materials, or safety. The contractor may use cheaper, lower-quality materials or hire less experienced labor, which can affect the overall durability and performance of the building.
Incomplete or Unrealistic Scope of Work
Some low bids are based on an incomplete understanding of the project requirements. The contractor may bid low but realize they have added costs for project needs after they start. Prost Builders has 76 years of experience in this area and has completed projects from all types of commercial projects-so our extensive knowledge helps us get the right bid amount for all work needed.
Change Orders & Cost Overruns
The lowest bid might be a way to win the bid initially-but once the project begins, the contractor may frequently issue change orders that drive up the total cost well beyond the original bid and higher than the other competitor’s original bid cost.
Experience and Capability
A low bidder may lack the necessary resources, experience, or personnel to complete the job on time and to specifications for the project. This can lead to safety issues, delays, or even project failure.
Financial Stability
Very low bids may indicate that the contractor is financially unstable or desperate for work. This increases the risk of bankruptcy mid-project, leaving the owner with an incomplete build, and potential legal issues to handle.
Timeline and Scheduling
Low bids sometimes come with unrealistic project timelines. Experience with Missouri weather and other issues that can delay the project is crucial, therefore the bid should be based on a reasonable schedule that allows for rain, snow, and other factors that affect daily construction site work. Project delivery delays can lead to penalties, lost revenue, or extended costs, like being forced to use temporary facilities or hiring future employees for a new facility that won’t meet the scheduled deadline.
Reputation and References
A contractor that has a solid reputation and proven track record may bid higher—but will also offer fewer delays, more reliability, more experience, and better overall results. Prost Builders has been constructing facilities for so long that we have vast knowledge and experience for every aspect of construction.
Best Practice: Total Value vs. Lowest Price
Owners and project managers should evaluate:
- Technical qualifications
- Past performance
- Safety records
- Financial strength
- Schedule compliance
- Bid completeness
There will always be some delays in constructing a facility-due to unforeseen weather, lack of labor resources or supply shortages, but Prost Builders keeps that in mind for each project’s schedule. The goal is to select the “best value” bid—not the cheapest. Contact Prost Builders when you want the best bid from the industry leader for Central Missouri to build your high-quality facility.
