Does Expensive Mean Better?

When it comes to day-to-day home renovations, you can ask family members or some friends for advice. When it comes to large construction how do general contractors choose?

In North America, it is estimated that there are roughly 730,000 contractors. That's a lot of companies to choose from.

From our own experience developing large commercial projects in Canada, we understand exactly these pain points, and a lot of it had to do with price, and proving price.

When contractor A quotes more than contractor B, typically contractor B is always the winner because their price is lower, and most general contractors will tell you that.

This system is completely flawed because price doesn't always translate into quality.

So how do contractors prove the quality of their work? Well, they really can’t.

What they do have though, is reputation. However, one bad job or problem on a job site can really spread like wildfire in the industry.

Within the construction industry, there are those companies who are always underbidding jobs, essentially to remain active. Generally, the work is awful typically because the people they hire are far less skilled or don't feel compelled to work to the best of their ability because they're being paid a lot less than average (the margin has to come from somewhere after all). Or the less expensive companies are the "king’s of change orders", always adjusting, and changing the original scope of the work.

Anyone can say they are the best, but let’s actually prove the best. Performance and money go hand in hand, if you end up choosing a company that sells their brand to you, and end up being a terrible trade than that is money out of the GC’s pocket.

How do you prove your subcontractor's prices, and how will you know they are "the best"?

 

 - Ashley Kielbratowski

TipsAshley Kielbratowski