For owners, a low bid may be very attractive. There have been countless examples of low bidders winning a job, and soon after, contractors and owners find themselves in a quandary. This is why construction professionals need to understand and be prepared for the potential risks that may accompany a project won through a low bid. The following are three possible risks of awarding a low bidder a construction project.
More Change Orders
Contracts won through a low bid are notoriously known for increased changes orders. If contractors underbid due to estimating the cost of the project incorrectly, change orders are usually requested to make up the difference. Change orders can not only impact the pace of the project but can lead to claims. A Jacksonville construction litigation attorney can help you navigate any legal disputes as a result of pricing disputes as a result of too many changes orders.
Reduced Quality of Work
A low bid can be a sign of potentially low-quality work. This is not to generalize every low bid; however, a low bid at times may be a sign that a contractor may be inexperienced or may have cut costs to win the bid. Either way, this creates deficiencies down the line due to the use of cheaper materials or project delays. In the end, you’re stuck with a poorly built or unsafe final product. Whenever a low-quality project comes into play, there is an increased need for a Jacksonville construction attorney since disputes are likely to happen.
Project delays are a result of some mishap in the project. Change orders are an example of what could cause delays in your projects since they need to be approved and usually increase project costs. This is why change order best practices are vital. Couple this with other mishaps, like poor quality work and you have yourself a delay that could end up in arbitration or litigation if not resolved properly.
Are You Ready to Bid?
Have you assessed your bidding readiness? It’s important to be thoroughly prepared before bidding if you want to avoid common mistakes and a bid protest. You can prepare by conducting pre-bid meetings and by evaluating every project element to determine the potential success of the project. A Jacksonville construction attorney can assist you with protesting or defending a winning bid should you be concerned about a current bidding process.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.