Why you should never choose the lowest bidder.
A low price is so attractive. Who doesn’t want to get a deal or take advantage of a sale? A cheaper price on a durable good like a dishwasher might save a few bucks now and look as good as its higher-priced competitor. It might also last as long, making it easy to think that there is no correlation between the best quality and higher prices.
Unfortunately, the same case can’t be made with most home improvement or home maintenance projects. The lowest bidder often overlooks key aspects of the project, making them either go well over their budget or attempt to cut corners to ensure they don’t lose money on the deal.
We’ve all experienced the rush of excitement with a low bid on a project and the disappointment of the resulting work. Low bids mean low quality, plain and simple. That's why we’ve learned to really get to know our contractors, craftsmen, maintenance and repair professionals. They are part of our extended family because they take care of us. They know our houses and we know them. Our guys and gals ensure all costs are included so there are no surprises later on. This also allows them to guarantee that they will meet their promised deadlines within budget. They pride themselves on honesty and integrity, and are up front from the beginning about service costs.
When contractors offer a lower bid, they are not always taking all project costs into account like shipping of appliances, materials, etc. or rental for special equipment. This complicates the contractor's budget on the bid and may change their attitude on the project, resulting in less effort to do the work right or in skimping on quality, be that parts or labor. If the bidder has missed something altogether or left out some items to give you a lower price, the project is likely to end up over budget and over schedule. This is because there will be extra work required to make the changes needed to meet your requirements that were missed or done incorrectly.
Here are a few points to take into consideration when it comes to low-bid pricing for projects:
A low bid doesn’t mean the company is the most capable
Make a bid comparison to see where the differences lie between contractors
Some lower-priced contractors may hire unqualified workers
They may be unable to comply with regulatory requirements
Another factor to keep in mind when evaluating lower bids is something called “suicide bidding.” This happens when a company intentionally submits a bid for less than it costs to do the work. The rationale is that it will be an easy bid to win and will help retain skilled labor while also allowing the contractor to attempt to make money back during the contract. Unfortunately, when this type of bidding backfires, everyone involved is affected by negative results such as poor quality, poor service, multiple disputes, and a contractor who may be unable to pay their debts.
Do business with people you like, know and trust. Going with the contractor that is recommended by your friends, with whom you connect most, and who has the most realistic bid can help you receive higher quality work with a longer lifespan while avoiding any risks that might be detrimental to the project. In the end, go with people who pride themselves on outstanding work quality, who provide honest bid prices for exceptional service and on-time project delivery. You’ll know the right people: their goal is your satisfaction, not just getting your business like it's a notch in their belt.
BOTTOM LINE: Don’t settle. Don’t be cheap. It will cost you more in the long run.
P.S. When we recommend a contractor, like George is My Plumber (George Garcia) or House Painting LA (Carl Tillmanns), we know that they are going to be on the high side of bidding. There's a reason. They are the best. Their work is impeccable and will last. They care about what they do and about their reputation. Your house is a point of pride for them, and that's really all you need to know.