Underbidding Construction Projects
There are more contractors who underbid jobs today than
ever before. The problem seems to be getting worse and not better. You
would think that the homeowner would benefit from these low prices, but
it's just not working out that way.
This morning I received an e-mail back from a termite damage job that I recently bid. The homeowner told me that I overbid the job by almost double his lowest price. Obviously I don't know if the homeowner is telling me the truth, because I've had homeowner's light to me in the past. I know that's hard to imagine, but there are some dishonest people out there and their motives are usually unknown to people like me.
Underbidding construction projects is creating big problems for homeowners and competing contractors. You would think that most homeowners would benefit greatly from lower prices, but this isn't like the supermarket. If I go into one supermarket who is selling the exact same product for $10 and another supermarket who selling it for seven dollars, the lower priced product would definitely be benefiting the consumer
In the construction business it doesn't work that way. I don't know how many times I've seen home repairs made by so-called professionals that do more damage than good. There is only a couple of ways that a contractor can you give a homeowner low prices.
Either the contractor is going to have to pay his workers less money or use inferior materials. The biggest problem with this is that when prices get too low, the contractor will use inferior materials and low wages to under bid the competition. It's not just that though, there are other shortcuts that contractors can take, that won't be benefiting the homeowner.
I've said this before and I will say it again,” You really get what you pay for most of the time.” Neither the contractor or the homeowner benefits from underbidding construction projects. The homeowner usually ends up with an inferior product and the contractor can't make enough money to keep up with cost-of-living increases.
This article isn't going to stop inferior workmanship, homeowner complaints or contractors who don't make enough money to provide their families with health insurance, but it will get some people thinking and that's perfectly fine with me.