The Cheapest Bid in Construction Can Cost You More in the Long Run

When you're planning a home improvement project, whether it's a remodel, an addition, or even mold remediation, one of the first steps is gathering bids from contractors. Many homeowners are tempted to go with the lowest bid, assuming they’re getting the best deal. But in construction, the cheapest bid is often not the best—and in many cases, it can end up costing you far more in the long run.

Here’s why choosing the lowest bid can be a mistake and what you should look for instead.

1. Low Bids Often Mean Low-Quality Work

In construction, there’s a saying: “You get what you pay for.” When a contractor submits a bid that’s significantly lower than the others, it often means they’re cutting costs somewhere—whether it’s using cheap materials, hiring inexperienced labor, or skipping critical steps in the process. While this might save you money upfront, it can lead to costly repairs and rework down the road.

Imagine hiring a contractor to build a home addition at half the price of competitors, only to find out a year later that the foundation is cracking or the walls are riddled with mold due to improper moisture control. The money you "saved" quickly disappears as you scramble to fix the damage.

2. Hidden Costs Can Pile Up

Some contractors use low bids as a bait-and-switch tactic. They offer an appealingly cheap estimate to win the job, then hit homeowners with additional costs once the project is underway. Suddenly, you're facing unexpected "change orders" for essential items that weren’t included in the original bid.

A reputable contractor provides a clear, detailed estimate that includes all foreseeable costs. If a bid seems too good to be true, ask yourself: What’s missing?

3. Lack of Proper Licensing and Insurance

A suspiciously low bid might mean the contractor isn't properly licensed, insured, or bonded. This puts you, the homeowner, at serious risk. If an uninsured worker gets injured on your property, you could be held financially responsible. If the contractor abandons the job midway through, you might have no legal recourse.

Always verify a contractor's credentials before hiring them, regardless of how tempting their price might be.

4. Cutting Corners on Permits and Code Compliance

To save time and money, some low-bidding contractors skip necessary permits or fail to follow local building codes. While this might not be immediately noticeable, it can cause major headaches if you try to sell your home later and a home inspector flags the issues. Worse, if an improperly completed project leads to damage (like electrical fires or structural failures), your homeowner’s insurance might not cover the repairs.

5. Poor Communication and Customer Service

Contractors who consistently offer the lowest bids often juggle too many jobs at once to make ends meet. This can lead to delays, miscommunication, and frustration. If a contractor doesn’t have the time or resources to properly manage your project, you could be left with half-finished work and unanswered phone calls.

How to Choose the Right Contractor

Instead of focusing solely on price, look for a contractor who offers the best value—a balance of fair pricing, quality work, reliability, and strong customer service. Here are a few steps to ensure you're making a smart choice:

• Compare multiple bids: If one bid is drastically lower than the rest, it’s a red flag. Ask the contractor why their price is so much lower.
• Check reviews and references: Look for a contractor with a strong track record of satisfied customers. Ask for references and follow up with past clients.
• Verify credentials: Ensure they are licensed, insured, and have experience with your type of project.
• Get a detailed contract: A reputable contractor will provide a clear, itemized contract that outlines exactly what’s included, the timeline, and payment terms.

Final Thoughts

The cheapest bid in construction is rarely the best choice. In many cases, it leads to hidden costs, poor workmanship, and major frustrations. When hiring a contractor, prioritize quality, experience, and transparency over the lowest price. A well-done project will stand the test of time—and ultimately save you money in the long run.

If you’re looking for a contractor who guarantees high-quality work with no shortcuts, feel free to reach out! We specialize in mold-free, long-lasting construction with a 10-year warranty and bi-annual inspections. Because when it comes to your home, cutting corners is never worth the risk.