Why You Must Compare Commercial Construction Bids “Apples to Apples” — And Beware the Lowest Bid
When it comes to selecting a commercial contractor, the bidding process can feel like navigating a maze. You collect three or more quotes, compare the numbers, and one bidder comes in significantly lower than the rest. Sounds like a win, right?
Not so fast.
Failing to compare construction bids “apples to apples” can lead to costly surprises, subpar work, and project delays. In this post, we’ll break down why bid comparison should go beyond the bottom line—and why the lowest bidder might be your biggest risk.
1. Not All Bids Are Created Equal
On the surface, one bid might look like a bargain. But unless you analyze each proposal thoroughly, you might be missing crucial distinctions in:
Scope of Work: Does each bid include the same tasks, materials, and labor expectations?
Exclusions: What’s not included is just as important. One contractor may exclude demolition or utility tie-ins.
Material Quality: Lower-cost bids may rely on cheaper, less durable materials.
Subcontractor Experience: Who’s actually doing the work? Skilled trades make a difference in longevity and code compliance.
Project Timeline: A rushed job might lead to shortcuts and poor workmanship.
2. The Danger of the Lowest Bid
While it’s tempting to go with the lowest number, in commercial construction, that’s often a red flag. Here’s why:
Cut Corners: Some contractors underbid to win the job, then reduce costs by cutting quality or underpaying labor.
Change Orders Galore: Unscrupulous bidders may lowball the initial quote, only to hit you with expensive change orders later.
Delays and Disputes: Underfunded projects are more likely to suffer timeline issues, payment disputes, and even legal problems.
Financial Instability: If a contractor isn’t making enough on the job, they may abandon the project or go out of business mid-way.
3. What a Proper “Apples to Apples” Comparison Looks Like
To ensure you're truly comparing bids fairly:
Use a Standard Bid Form: Provide a detailed RFP with clear expectations, timelines, and material standards.
Request Line-Item Breakdowns: Don’t settle for lump sum estimates. Ask for details on labor, materials, equipment, and subcontractors.
Clarify Assumptions: Some bids may assume different start dates, site conditions, or owner-supplied materials.
Look Beyond the Price: Evaluate the contractor’s reputation, past projects, licensing, insurance, and ability to meet deadlines.
4. The Value of Transparency and Experience
A fair and accurate bid reflects a contractor who understands the full scope of your project, communicates clearly, and isn’t cutting corners. Choose a builder who:
Takes the time to walk your site.
Asks detailed questions.
Offers transparent pricing.
Provides references from similar commercial projects.
You’re not just hiring a contractor—you’re choosing a construction partner who can make or break your investment.
Conclusion: Choose Smart, Not Just Cheap
In commercial construction, the stakes are high. Misinterpreting or rushing the bid comparison process can lead to budget overruns, missed deadlines, and structural issues down the road.
Don’t be swayed by the lowest price tag. Instead, insist on “apples to apples” comparisons, and choose the contractor who brings the best combination of value, quality, and accountability to the table.
Need help reviewing your commercial construction bids? Our experienced team can walk you through the process and ensure you’re making a smart, informed choice.
