Dangers of the Lowest Bid

Aug 26, 2019

Some contractors will simply throw out a low bid as a negotiating strategy.

Contractors with integrity give you detailed and specific proposal the first time and include precise details of all materials and work needed. If you are issued a bid without an explanation or on-site consultation, you should not only question it but the skill and professionalism of your contractor as well. It is just as important, to make a note of what is not detailed as well as what is included.

Every contractor is in business to make money.

If you receive a contractor bid that is 10% or more below other bids – it simply isn’t the same job. Quality companies will, for the most part, agree on the best way to complete a job. If their prediction varies greatly, they may be cutting corners or making a mistake.

If a bid seems to be good to be true, it is.

As noted in the quote from the Wall Street Journal above, it is easy to be fooled by the low quote and a “nice person”, but this isn’t usually the case. Call at least 3 references and ask about the end of the job cost versus the proposal.

Many contractors hide behind low prices.

Often times, the low bidder isn’t certified or using skilled labor and they are hoping if they offer a low price, you will overlook other shortcomings. An unlicensed contractor cheats the government and if they will do that they will just as likely cheat you. Avoiding them is a smart move.

Key Takeaways

There have been countless local and national news stories about unscrupulous contractors disappearing with homeowner deposits, operating without a license, or never completing their work and in most situations, the victims were blinded by a low-bid.

If you are seriously considering hiring any contractor with a very attractive bid to complete your commercial or residential remodeling project, make sure to do your research beforehand. Ask questions and get all of the answers in writing. A little legwork before you sign the contract could save you a great deal of time and effort down the line.

Everest Siding and Windows is a highly respected contractor in Houston Texas with multiple awards and strong customer guarantees. With over 20 years of residential and commercial remodeling experience, we are proud of the trusting relationships we build with each of our clients, crews, and suppliers. We offer no high pressure free in-home consultations and our proposal stands good for 12 months from the date of free consultation.

Warren Buffett: “Price Is What You Pay, Value Is What You Get”

“The Bitterness of Poor Quality Remains Long After the Sweetness of Low Price is Forgotten”

John Ruskin – “There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey. It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money — that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot — it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”