When it’s time to award a contract, going with the lowest bid can feel like the obvious choice. It’s quick, easy, and looks good on paper. But in reality, choosing based on price alone can lead to bigger problems—and bigger costs—down the line.
At Decades, we’ve seen how chasing the lowest number often results in missed deadlines, change orders, disputes, or worse. The lowest bid isn’t always the lowest cost.
What a Lowest Bid Might Really Mean
A surprisingly low bid can be a red flag. It might signal:
- A vague or incomplete understanding of the scope
- Cost-cutting on materials, labor, or safety standards
- Hidden costs tucked into future change orders
- A lack of experience or financial stability
Awarding contracts solely based on price can introduce serious risk. Those risks usually show up as budget overruns, poor workmanship, or project and/or service delays.
Look Beyond the Price Tag
Smart procurement teams evaluate more than just numbers. They consider:
Relevant experience and track record
Has the vendor successfully handled similar projects? Do they come with solid references?
Clear understanding of the scope
Does the bid address every detail of the project or service? Are any assumptions or exclusions clearly outlined?
Scheduling and resource capacity
Can the vendor meet your deadlines without stretching their team too thin?
Licensing, insurance, and safety practices
Are they covered, compliant, and committed to risk management?
Long-term cost and value
Will the investment hold up over time, or will you end up paying for repairs, delays, or rework?
The “lowest” bid often costs more when you consider the full picture.
The Role of a Trusted Partner in the Process
One of the best ways to protect your investment is by working with a third-party contract management team. This is where our skills and expertise come in. A qualified partner like Decades can:
Provide deep industry expertise
We understand how to evaluate bids, assess risk, and ask the right questions before contracts are awarded.
Bring structure and consistency to procurement
With clear processes, we help ensure fairness, transparency, and accountability every step of the way.
Negotiate from a position of strength
Our experience and network give us leverage that benefits our clients, especially when navigating vendor relationships.
Track performance and reduce risk
We don’t just manage contracts. We monitor progress, flag issues early, and help drive projects to successful completion.
Bottom Line: Prioritize Value Over Price
Selecting a contractor isn’t just a numbers game. Quality, experience, and reliability often have a greater impact on the outcome than initial cost. With the right partner, you can approach contracting decisions with confidence.
At Decades, we help organizations make informed, strategic contracting decisions. From bid review to project closeout, we’re here to help you reduce risk and get more from your investment.
Contact us today to learn how we can support your procurement and construction management needs.
