WHY THE LOWEST BID CAN BECOME THE MOST EXPENSIVE DECISION
BY RON DUBAS, PRESIDENT OF USS
“The true value of a project extends well beyond the initial purchase price.”
The age-old proverb “If it is too good to be true, it probably is” has stood the test of time for a reason. In the construction industry, it serves as a reminder that the lowest price doesn’t always produce the best outcome.
Too often, competitive bidding becomes a race to the bottom, where short-term savings come at the expense of long-term performance, quality, and reliability. The result is unmet expectations and costs that far exceed the initial difference in price.
“Best value” and “lowest price” should not be mistaken as synonymous. There is a distinct difference because price is what you pay versus value is what you receive.
We’ve seen that firsthand on more than one occasion.
Real-World Lesson
Our team partnered with a large youth sports organization to design and construct its first multipurpose sports facility. Together, we aligned on a shared vision, selected products designed for long-term performance, and worked with an experienced installation team.
The result was a facility the organization was incredibly proud of as it quickly became a premier destination in its region.
That success inspired a capital campaign to expand the complex with additional fields. This time, however, budgets were tighter. Competing contractors convinced the owner they could deliver the same caliber of facility with lower-cost products and services.
Unfortunately, the promise didn't match the execution.
The differences between Phase 1 and Phase 2 became immediately apparent. Product quality, craftsmanship, and overall execution fell short of expectations, ultimately creating additional costs and frustration for the owner.
Looking back, I believe our team failed the client. Not because we didn't deliver a great project Phase 1, but because we hadn't earned enough trust to help them see beyond the lowest number on Phase 2.
Trust Changes the Conversation
So how do we help our client partners avoid the same demise that many projects face?
It starts with building a trust based partnership. The best suppliers don’t simply recommend and deliver products. Partners work to understand the needs and goals of a project and then use their expertise to:
Identifying potential risks and discussing them before they become costly problems.
Demonstrating a clear understanding of the project's scope, vision, and long-term objectives.
Sharing proven examples of successful projects with similar requirements.
Supporting the entire project team with responsiveness, accountability, and expertise from design through completion.
Once trust is established, a partnership can work to shift the focus of the project from price to value and solutions.
What does a value-based conversation look like?
Value based discussions focus on:
Service Life & Maintenance- How long is the product expected to perform, and what maintenance will be required over its lifetime?
Complete Project Scope- Are there gaps in the specifications that could lead to costly change orders? An experienced partner helps identify those risks before construction begins.
Total Cost of Ownership- The lowest purchase price may become the highest lifetime cost when repairs, replacements, labor, and operational disruptions are considered.
Supplier & Installer Experience- Past performance is one of the best indicators of future success. References, completed projects, and industry reputation all provide valuable insight.
Warranty & Long-Term Support- Who will stand behind the product years after the invoice has been paid? A warranty only has value if the company behind it is committed to the customer's long-term success.
Risk Mitigation- Schedule reliability, product quality, installation expertise, and alignment with the project vision all contribute to reducing risk and protecting the owner's investment.
The most successful projects are rarely remembered because they came in with the lowest bid.
They are remembered because they were completed safely, performed as expected, required minimal maintenance, and served their communities for years without issue.
As an industry, we should continue to pursue competitive pricing while also recognizing the importance of quality, durability, expertise, and partnership.
Because when we shift the conversation from "What costs less today?" to "What delivers the greatest value over the life of this facility?", everyone benefits including the owner, the contractor, the supplier, and ultimately the people who use the space every day.