Construction Companies: Does A Higher Price Always Equal A Better Job?

When you are looking to hire a construction company, you may be surprised by all the bids you receive. Some will seem absolutely outrageous, while others will appear unbelievably below cost. Yet, does a higher bid or higher price always equal a better job? It depends.

Weighing Recognizable Companies with Value and Quality

A higher bid for the work you want completed often comes from companies that are very well-known and well-established. However, that does not mean that the work they do is the best or better than a company who is offering a lower bid. If you want to hire the best, the most well-established and well-known construction company money can buy, be sure to check out several of the other projects the company has completed. Talk to the other organizations or agencies that hired the construction company to get an overall picture of the quality of work they have completed. Then you can decide if the high-bidding contractor and construction company is worth the cost.

High Bids for Higher Quality Work

A much smaller construction company may toss in a high bid for the work, but only because the owner and contractor knows that higher quality work costs more. You have the opportunity to ask most of the contractors you are looking to hire why they have placed the bids they have. Small companies or companies that have not been in business for very long can still command higher prices for their work if it clearly has a quality control level that exceeds its competitors. Ergo, do not rule out smaller companies with higher bids because the contractor could know more about what he or she is doing than what a few of his or her competitors know.

Salary and Payroll Versus Equipment and Construction Materials

Clearly, when a contractor places his or her bid, you can see where the greatest expected expenses fall. Are you paying more for equipment and materials, which translates into quality work, or are you paying for the contractor's expected salary and payroll for his crew? If salary and payroll exceed the amount necessary for equipment and materials by a significant amount, you may not be getting your money's worth by accepting a contract with a high-bidding construction company. Examine the details of every bid closely and conduct thorough interviews with the contractor and owner of every company before you make your selection.

Share