IS GOING WITH THE LOWER BIDDER THE BEST OPTION?
Is Going With the Lower Bidder the Best Option?
We currently contracted two projects where both owners were in the same debacle and needed to get themselves out on top.
The owners came back to us, after declining our original bid for the jobs due to our final dollar amount. Wondering why?
Multiple bids were submitted for the projects. The lowest bidder was awarded the renovation, which seemed like the logical choice until…
Months went by and units were not being turned in the time frame initially contracted. Multiple change orders were submitted due to a lack of truly understand the scope of work and job at hand. The owners were experiencing a loss to lease and a negative impact on their NOI.
For each unit that was supposed to be completed but sat unoccupied and not generating revenue, drastically affected the asset owner’s bottom line.
The owners came back to us explaining their current situation. We revised the originally submitted bid to reflect any units that had been completed, and had our team onsite within a few weeks with custom cabinets and cabinetry in tow.
We may come across as a bit more expensive on some bids, but in the long run, the benefits of being a self-performing general contractor outweigh the attractive initial lower bid.
There are many benefits a national self-performing general contractor niche-specific to multifamily renovations has above its competitors. Below are just a few!
- Ability to control timing and quality
- Ability to maximize space and usability
- Less liability for damaged products
- Control over design
- Control over logistics
- Control over material costs