In today’s construction industry, the approach to selecting contractors is a topic of ongoing relevance. Many clients are tempted to choose the lowest-priced offer, believing this to be the most effective way to reduce costs. However, experience shows that this practice often results in negative outcomes: project planning and design may suffer, deadlines can be missed, and the quality of work and materials may decline, affecting the long-term operation of the building.

Major contractors typically purchase materials in bulk directly from manufacturers or distributors, which means material costs are largely similar across the market. The only areas where savings may occur are in the quality of tools and the qualifications of workers and engineers—factors that directly influence the final outcome. In multi-stage tenders, when only one contractor remains offering the lowest price, they often reduce their profit margin and then further cut costs by compromising on materials, equipment, or expertise. This leads to predictable results.

For those aiming to build a project that remains efficient and reliable for years, it is crucial to seek a balance between price and quality. Using average market prices as a benchmark can help avoid common pitfalls and achieve the desired outcome.

Before proceeding, it is advisable to carefully review contractor proposals, considering not only the price but also experience, reputation, and technical solutions offered.