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THE CHEAPEST SUBCONTRACTOR IS OFTEN THE MOST EXPENSIVE DECISION ON THE PROJECT.

Writer: Peter Isaac Harley
Peter Isaac Harley
Aug 25
1 min read

We celebrate the saving at procurement. Then spend the rest of the project paying for it on site. The lowest bidder gets the package.

Great.

Procurement saved 10%.

Then reality arrives.

Insufficient manpower.

Weak supervision.

Poor quality.

Missed milestones.

Constant rework.

Material shortages.

More meetings.

More management intervention.

More claims.

And eventually...

Another subcontractor is brought in to help finish the work.

That 10% saving?

Gone.

Now add the hidden costs:

Your management team's time.

Your programme delay.

Disruption to following trades.

Overtime and acceleration.

Client dissatisfaction.

Liquidated damages exposure.

Reputational damage.

The cheapest price on tender day can become the highest cost by completion.

Yet construction keeps repeating the same mistake because we measure procurement savings immediately...

But site losses are buried across the project.

I'm not suggesting we always appoint the most expensive subcontractor.

I'm suggesting we stop confusing lowest price with best value.

A subcontractor should not be judged only by what it costs to appoint them.

They should be judged by what it will cost the project if they fail.

Because sometimes the most expensive words in construction are:

"They were the cheapest."

👇 What's your experience?

Should procurement be rewarded for achieving the lowest price—or for appointing the subcontractor who delivers the best final project outcome?


Construction

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