The Dirty Little Secrets of Competitive Bidding

Why Getting Multiple Bids Isn’t Saving You Money

Let’s talk about a classic myth in homebuilding: “Get three bids, pick the lowest, and you’ll save money.” It sounds logical, right? But if you’ve ever been through a renovation or new build, you probably know it’s not that simple. At LEFF Design Build, we believe your project deserves more than a race to the bottom. Here’s why the traditional design-bid-build model—and the practice of collecting multiple competitive bids—often leaves homeowners with less value, more headaches, and unexpected costs.

The Design-Bid-Build Model: A Quick Refresher

In the traditional design-bid-build (DBB) process, you hire a designer or architect first. Once the plans are complete, you send them out to several contractors for bids. After a round of number crunching, you pick the lowest bidder and sign a contract. Sounds straightforward, but the reality is far messier.

Why Competitive Bidding Isn’t Apples to Apples

The idea behind competitive bidding is that it forces contractors to sharpen their pencils and deliver the lowest price. But here’s the catch: bids are rarely, if ever, truly comparable. Each contractor interprets the plans differently, makes their own assumptions, and includes (or excludes) different items in their estimate. What looks like a “lower” bid might simply be missing key components—intentionally or not. Exclusions are a common way to hide costs that will inevitably crop up later as change orders or direct expenses to you, the homeowner.

The Hidden Costs of “Winning” the Bid

When contractors are forced to compete primarily on price, they’re incentivized to cut corners—sometimes literally. This can mean:

• Omitting necessary work from the initial bid, knowing it will be added later as a change order.
• Specifying lower-quality materials to keep costs down.
• Rushing through the estimating process, leading to mistakes or oversights that surface during construction.

These tactics don’t just risk your budget—they can compromise the quality and longevity of your project.

Designing Without the Builder: A Missed Opportunity

In the DBB model, the builder isn’t involved until the design is finished. That means you miss out on real-time construction expertise during the design phase. Without a builder’s input, your plans may include ideas that are impractical, expensive, or simply unbuildable. You lose the chance to:

• Proof construction feasibility early.
• Get real-time cost information to inform design decisions.
• Explore creative options for cost savings.

This disconnect often leads to “sticker shock” when bids come in, followed by a painful round of redesigns and delays.

Time Is Money: The Slow Lane of DBB

Because the design, bid, and build phases happen one after another, the traditional model is usually the slowest way to get your project built. There’s no overlap—estimating, permitting, and pre-construction services all wait in line. If bids come in over budget, you’re back to the drawing board, losing precious time and momentum.

A Better Way: The Power of Collaboration

At LEFF Design Build, we believe in a collaborative approach. By involving the builder with design from the very start, you get:

• Accurate, real-time cost feedback as the design evolves, so there are no budgetary surprises.
• Value engineering—creative solutions that balance your vision and your budget.
• Streamlined schedules—design, estimating, and permitting can overlap, saving you weeks or even months.
• Fewer change orders and a smoother construction process, because everyone’s on the same page from day one.

Industry studies show that design-build projects can save 6% to 20% compared to traditional methods, with fewer surprises and a higher level of client satisfaction.

The Bottom Line

Getting multiple bids might feel like you’re being a savvy consumer, but in reality, it often leads to confusion, hidden costs, and missed opportunities for value. When you choose a design-build partner like LEFF, you’re investing in a process that puts your goals, your budget, and your peace of mind first. Let’s build something extraordinary—together.

Ready to start your project the smarter way? Reach out to LEFF Design Build and discover how collaboration beats competition, every time.