The True Cost of Going with the Lowest Bid
The Temptation of the Low Bid
When you get three bids and one is 20% lower, it's tempting. But in construction, there's almost always a reason for a significantly low bid. And you'll pay for it eventually.
How Low Bids Happen
Intentional Under-Bidding
Some builders bid low to win the job, knowing they'll make it up in change orders. Every "surprise" becomes an extra charge.
Missing Scope
The low bid might not include things other bids do. Appliances, landscaping, driveway, permits. Read the fine print.
Lower Quality Materials
"Cabinets" can mean $5,000 or $25,000 depending on quality. Same word, very different product.
Inexperience
New builders sometimes under-estimate costs. You'll either pay more or get less.
Real Cost Example
Project: 2,400 sq ft custom home
Builder A: $480,000 bid
Builder B: $520,000 bid
Builder C: $510,000 bid
Homeowner chose Builder A. Final cost after change orders, delays, and fixes: $565,000. Plus six extra months of construction loan interest.
Builder B's transparent cost-plus approach would have been $525,000 total with no surprises.
What Low Bids Actually Cost You
Change orders (often 10-20% of original bid)
Delays (extended loan interest, rent, storage)
Quality issues (repairs within first few years)
Stress and frustration
Relationship damage with your builder
How to Compare Bids Fairly
Ensure identical scope
List allowances and what they include
Ask about typical change order percentages
Check references specifically about final cost vs. bid
Our Approach
We don't play bid games. Our cost-plus-15% model means you see actual costs. No padding, no surprises. The price you see is the price you pay.
Want a bid you can trust? Contact Plymouth Builders for transparent pricing.
