The Hidden Costs of Cheap Construction: Why the Lowest Bid Isn’t Always the Best Choice.

Corsac Construction Ltd.
Aug 28
5 min read

When planning a renovation or new build, it’s natural to compare quotes and feel drawn to the lowest number. After all, who doesn’t want to save money? But in construction, the cheapest bid is rarely the best value. More often than not, it hides risks and unexpected expenses that can turn your project into a financial and emotional burden.

Here’s what you need to know before choosing a contractor based solely on price.

1. The Temptation of the Lowest Bid

Price is usually the first thing clients look at when choosing a contractor. But construction projects are not like buying a standard product off the shelf—every build is unique.

A low bid often means:

Corners are being cut in materials or workmanship.
Some key project elements have been left out of the estimate.
The contractor is underestimating costs to win the job, planning to “make up the difference” later.

⚠️ Example: A homeowner might see a $30,000 quote for a basement renovation compared to $45,000 from a reputable contractor. But the lower bid doesn’t include permits, insulation, or proper waterproofing. In the end, the “cheap” project could cost more than $55,000 once corrections and repairs are factored in.

2. The Hidden Costs Lurking Behind Low Quotes

Cheap Materials = Expensive Repairs

Low bids often rely on the cheapest possible materials. While they may look fine at first, they wear out quickly. That bargain flooring may start warping within a year, or a cut-rate roof may need repairs after the first storm.

Long-term impact: What you save now, you pay for later in repairs, replacements, and even lower resale value.

Project Delays and Timeline Extensions

A contractor who underbids may juggle multiple jobs at once to make ends meet. This often leads to:

Missed deadlines
Extended rental costs (if you’re living elsewhere during a renovation)
Frustration from an unfinished space sitting idle

Example: A $10,000 “savings” can disappear quickly if you spend extra months paying rent or temporary storage fees.

Surprise Change Orders

One of the most common tactics behind a low quote is leaving things out. Once work begins, you may hear:

“That wasn’t included in the estimate.”
“We’ll need to add this for an extra $5,000.”
“The materials you want will cost more.”

By the time the “extras” are added, the low bid can balloon past the original higher estimate you turned down.

. Why Transparency Matters

A construction project is one of the largest financial commitments most people will ever make. That’s why clarity and transparency in estimates are essential. A contractor who provides only a one-line number—“Basement Renovation: $30,000”—isn’t giving you enough information to make an informed decision.

What a Transparent Estimate Should Include

A trustworthy contractor will give you a written, itemized estimate that covers:

Labor Costs: How many workers will be on-site, how long the project will take, and what the hourly/daily rates are.
Materials: Specifics on brands, grades, or alternatives (e.g., “engineered hardwood” vs. “laminate flooring”).
Project Timeline: Start date, completion date, and milestone deadlines.
Subcontractors: Which parts of the project will be subcontracted (plumbing, electrical, etc.) and confirmation they are licensed.
Permits & Fees: Building permits, inspections, and municipal costs should be included—not left as surprises later.
Contingencies: Allowances for hidden issues (like mold or outdated wiring), so you know how unexpected costs will be handled.

With this breakdown, you can compare estimates apples-to-apples instead of being swayed by a vague “lowball” quote.

Red Flags in Non-Transparent Quotes

Be cautious if a contractor:

Refuses to put the estimate in writing.
Uses only vague terms like “high-quality materials” without specifics.
Leaves out permits, disposal fees, or cleanup—these often show up as surprise add-ons.
Doesn’t outline a payment schedule tied to project milestones.

These omissions often create room for hidden costs that can double your final bill.

Alberta Prepaid Contractor Transparency: Contracts Over $200

In Alberta, consumer protection laws require that any prepaid contract over $200 must be in writing. This contract should clearly outline:

The total cost of the project.
A description of the work.
Payment schedule.
Your right to cancel within 10 days.

So if a contractor in Alberta gives you only a verbal estimate or refuses to provide detailed paperwork, it’s not just unprofessional—it may be non-compliant with provincial law.

Why It Matters for You

Transparency protects your wallet and your peace of mind. When you know exactly what’s included—and what’s not—you can:

Avoid surprise add-ons.
Hold your contractor accountable.
Plan your budget with confidence.

At Corsac Construction, our estimates are always comprehensive, detailed, and compliant with Alberta’s requirements. We want our clients to feel confident that there are no hidden surprises—just clear expectations and reliable results.

4. Quality is an Investment, Not an Expense

It’s important to view construction as a long-term investment rather than a one-time cost.

Resale Value: Buyers notice quality finishes and solid workmanship. Cheap construction can lower your home’s market value.
Maintenance Costs: Durable, well-installed materials reduce repair bills.
Peace of Mind: A home built with care is safer, healthier, and more enjoyable to live in.

Example: Spending $5,000 more on a high-quality roof today can save you $15,000 in leak repairs and replacements over the next decade.

5. Red Flags to Watch Out For

Not all low bids are scams—but many come with warning signs. Be cautious if a contractor:

Can’t explain why their bid is significantly lower than others.
Provides a one-page contract without itemized details.
Refuses to show references or proof of insurance.
Pushes for full payment upfront.

A reputable contractor will never shy away from questions, references, or transparency.

6. The Corsac Construction Approach

At Corsac Construction, we believe you deserve more than just a number on a page—you deserve peace of mind.

Our estimates are detailed, accurate, and transparent.
We use quality materials chosen for durability and value.
Our team is committed to on-time, on-budget delivery.
We view every project as a partnership, not just a contract.

We may not always be the lowest bid, but we’re proud to be the bid that delivers the best long-term value for your home and your family.

Final Thoughts

When it comes to construction, the old saying is true: “You get what you pay for.” The lowest bid may look good at first glance, but hidden costs, poor quality, and delays often make it the most expensive choice in the end.

Choosing a contractor should be about trust, transparency, and long-term value—not just price.

At Corsac Construction, we’re here to ensure your investment is built to last.