Although hard bids can appear appealing to building owners and architects seeking cost savings, they often result in negative repercussions in multi-million-dollar commercial contracts. Unfortunately, many contractors engage in predatory bidding, offering bids significantly lower than the actual cost of the project. This “low ball” bidding involves contractors submitting low bids with plans to recoup costs through change orders later. These change orders are often justified as additional costs for unforeseen issues or mistakes in the original plans, leading to quality compromises as contractors attempt to balance the low bid price.
Predatory bids undermine trust between building owners, architects, and contractors. Owners might feel deceived, and architects may believe their plans were not adequately reviewed. Moreover, predatory bidding frequently leads to cost overruns due to underestimating project demands or including minimal necessities in the initial bid.
Building owners and architects should consider alternative bidding methods such as design-build and negotiated bidding. In design-build, the contractor is responsible for both design and construction, ensuring a streamlined process and fewer change orders. Negotiated bidding involves the owner and contractor collaborating to determine a fair project price.
In summary, predatory “low ball” bidding is prevalent in the construction industry and often leads to adverse outcomes in multi-million-dollar commercial building contracts. Building owners and architects should explore options like design-build and negotiated bidding for a fair and transparent process, reducing the risk of cost overruns, substandard workmanship, and mistrust.
EPI Construction has a longstanding reputation for delivering outstanding services across various industries. Their expertise in design-build and design-assist projects offers a unique project perspective. While some clients may still need hard bids, EPI Construction promises fair and honest bids, highlighting potential issues and improvements upfront. Selecting EPI Construction ensures a collaborative and transparent approach to every project.
EPI Construction, known for its integrity and trust, operates in California, Arizona, New Mexico, and South Carolina, offering comprehensive construction solutions with a skilled in-house labor force.
