As a commercial property owner, facility manager, or developer, you’re responsible for ensuring that every construction decision maximizes long-term value. Whether you’re building from the ground up, renovating an existing space, or maintaining commercial properties, the temptation to accept the lowest bid is strong. But is that initial cost savings worth the risk?
It’s an all-too-common scenario: A project is awarded to the contractor with the cheapest price tag, but soon enough, unexpected expenses start piling up—shoddy workmanship, material failures, and change orders that blow the budget. What seemed like a smart financial decision turned into a costly mistake.
At Fahs Construction, we’ve witnessed the real cost of cutting corners. Choosing a contractor solely based on price can lead to hidden risks that jeopardize project timelines, quality, and your reputation. Let’s break down why prioritizing quality over the lowest bid is not just a good decision—it’s essential.
The Real Costs of the Lowest Bid
1. The High Price of Rework
Construction defects and rework account for up to 30% of project costs, according to industry studies. That’s thousands—sometimes millions—of dollars spent fixing mistakes that could have been avoided with better craftsmanship and planning. (Source)
2. Delays That Kill Your ROI
A low-bid contractor may cut corners on labor, scheduling, or materials, leading to project delays that extend completion timelines by an average of 9.8%. Every day lost in construction means lost revenue, frustrated tenants, and increased carrying costs. (Source)
3. Poor Quality = Higher Maintenance Costs
Buildings constructed with inferior materials or rushed labor can result in maintenance costs that are 50% higher over the first ten years of occupancy. Saving money upfront can cost exponentially more in repairs, legal disputes, and dissatisfied tenants down the line.
4. Reputation Risk and Liability
No property owner or facility manager wants to be known for faulty buildings or unsafe conditions. Poor construction quality leads to safety hazards, lawsuits, and compliance failures—damaging your credibility and making future projects harder to sell or lease.
Breaking the Low-Bid Cycle: What to Look For
If the lowest bid isn’t always the best bid, what should owners, managers, and developers prioritize?
- Experience & Track Record – Choose contractors with proven success in your project type.
- Material Quality – Verify that the bid includes durable, long-lasting materials, not just the cheapest option.
- Scope Clarity – Ensure the contract outlines clear deliverables to avoid costly change orders.
- Reliable Subcontractors – A contractor is only as good as their team. Are they using trusted, skilled professionals?
Fahs Construction: Building Value That Lasts
At Fahs Construction, we don’t just build structures—we build long-term partnerships based on trust, quality, and reliability. We work with developers, owners, and facility managers who understand that investing in quality upfront leads to fewer headaches, faster completions, and higher ROI.
The lowest bid might look good today, but the true cost of poor construction can haunt your project for years. Are you ready to invest in quality? Let’s talk about how we can help bring your vision to life—with durability, precision, and cost-efficiency that pays off in the long run.
