When the bids rolled in, the project team thought they had struck gold. One contractor’s price came in nearly 15% lower than the rest. The client, excited about the potential savings, leaned toward awarding them the job. But something didn’t sit right.
Buried in the low bidder’s numbers were missing allowances for building automation, no mention of casework installation, and a glaring absence of temporary utilities. What looked like a “deal” was, in reality, a costly mirage. Once those missing elements were added back in, the bargain bid ballooned—and the real value emerged from a more complete, more thoughtful proposal that had initially appeared more expensive.
It’s a story that’s played out many times: a rush to award the job to the lowest bidder without understanding what’s really included.
Price ≠ Value
In construction, the lowest bid can often come with the highest risk, especially when it’s not scoped correctly. On the surface, bids might appear to answer the same request, but contractors can interpret scope in different ways. Some might lump items together, others might leave components out altogether, assuming someone else is covering them.
Key pieces, like FF&E, mechanical systems coordination, site prep, or specialty subcontractor work, can be inadvertently (or intentionally) excluded, setting the stage for expensive change orders and delays once construction is underway.
That’s why comparing bids isn’t simply a price evaluation. When comparing bids to select a future construction partner, seek clarity, alignment, and total project value for smoother process and more efficient job.
Four Steps to a Smarter Comparison
The key to getting an apples-to-apples comparison is applying structure and scrutiny. Here’s how:
Think of it as your blueprint for consistency. By issuing a uniform form that outlines all required scopes and line items, you ensure every contractor is pricing the same elements.
List all major line items, such as foundations, framing, mechanical, and finishes, across each bidder. This side-by-side view helps illuminate discrepancies and highlight outliers.
Look for red flags: a price that’s too low for drywall might signal missed scope; a high line item could mean duplication or over-engineering. This analysis will help you ask the right questions before signing the contract.
Don’t assume—verify. If something seems off or vague, reach out. Bidders are usually happy to explain their assumptions or provide revised pricing based on clearer expectations.
A Clearer Path to Construction Success
The client from the initial story ultimately selected the more complete bid. While it wasn’t the lowest number on the page, it was the right one because it came with fewer risks, better alignment with their goals, and greater confidence that what was priced was actually what would be delivered. That’s the real win.
Bring in a Trusted Third Party
Comparing bids can feel overwhelming. Many owners, especially those with limited construction staff or experience, benefit from bringing in a third-party professional to help navigate the process.
Look for a partner who can:
This type of support often comes from owner’s representatives, construction consultants, or preconstruction advisors who specialize in managing risk and protecting the client’s interests, such as STRUCTR, a Hourigan Company.
A qualified third-party advisor can help ensure the bids reflect the same work, identify any gaps, and give you confidence that you’re making the right choice for your project.
Turning Numbers into Informed Decisions
Lining up numbers won’t paint a clear picture when comparing bids; clients should understand what’s truly being offered. When bids are based on differing assumptions, incomplete scopes, or unclear language, even well-intentioned decisions can lead to costly surprises.
The solution is a structured, thoughtful approach to bid evaluation—one that includes standardized forms, side-by-side comparisons, and scope validation. Whether led internally or supported by a third-party advisor, this process helps reveal the real story behind each number.
By taking the time to compare bids thoroughly, owners can reduce risk, avoid unnecessary change orders, and make informed decisions that align with their project goals.
