The Hidden Dangers of Choosing the Lowest Bid
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| The Hidden Dangers of Choosing the Lowest Bid |
When major projects arise on commercial or municipal properties, property owners and managers often turn to outside contractors to submit Request for Proposal (RFP) bids. These bids are meant to help them choose the most suitable contractor for the job. However, a common mistake many property owners and managers make is selecting the lowest-priced bid, a decision that can lead to considerable problems. In today’s discussion, we’ll explore four significant issues that can occur when cost is the only factor influencing the selection of a tree care or landscape contractor.
SHORTCUTS IN LABOR AND WORKMANSHIP
Contractors offering significantly lower bids often cut corners to reduce their own project costs and maximize profit margins. This approach can involve hiring unskilled workers or day laborers, which ultimately results in subpar work, lax safety standards, and poor overall quality. As a result, property owners may be left with landscapes or trees in poor health due to the lack of expertise and inadequate performance from such workers.
HIDDEN COSTS AND SURPRISE FEES
If a contractor’s bid seems too good to be true, it typically is. While the initial bid might appear attractive, contractors who underbid often recover their costs through hidden fees and charges for materials or necessary service equipment that were not included in the original estimate. These unexpected expenses can cause property owners and managers to end up paying amounts equal to—or even exceeding—the highest bid initially submitted.
INCREASED LIABILITY RISK FOR PROPERTY OWNERS
Low-cost contractors often do not possess proper licenses or sufficient insurance coverage, including Workers' Compensation and General Liability insurance. This oversight creates a higher liability risk for property owners in cases of on-site accidents, injuries, or property damage. Any cost savings from choosing the least expensive contractor can quickly evaporate, as property owners face potential legal claims or lawsuits stemming from accidents or damage caused during the project.
THREATS TO INSURANCE AND PROPERTY VALUE
Using unskilled or unlicensed contractors for tree care or landscaping projects can lead to improper work that jeopardizes warranties and even voids insurance coverage. For instance, historic shade trees covered by insurance may lose their value due to poor maintenance practices by untrained crews. Improper techniques can compromise the health of these valuable assets, significantly reducing their insurable value.
To avoid these risks and ensure the highest standards of professionalism, safety, and care on landscape and tree care projects, LMC stands out as the ideal choice for commercial property owners. Our Certified Arborists and Landscape Professionals provide a comprehensive range of services, including landscape maintenance, tree trimming, tree planting, weed control, irrigation installation, tree removal, ornamental stonework, landscape lighting, and water features. Contact LMC today for more information or visit our website to request a free consultation for your next project.
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