Effect of Cost-Based Contractor Selection on Construction Project Performance

When it comes to selecting contractors for a construction project, cost is often a significant factor. However, choosing a contractor based solely on their cost may not necessarily lead to the best project performance. In fact, the effect of cost-based contractor selection on construction project performance can often be negative.

One of the crucial things to keep in mind while selecting a contractor for a construction project is to ensure that they have the necessary experience and expertise. A contractor who is relatively less expensive but hasn`t handled similar projects before might not be able to deliver the desired results. This can cause delays, rework, and ultimately result in additional costs.

Another factor to consider while selecting a contractor is the quality of their work. A contractor who is cheap but doesn`t produce high-quality work might require additional revisions and repairs. This can also lead to delays and additional costs, making the overall project more expensive than originally planned.

Moreover, selecting a contractor based solely on their cost can lead to a poor safety record. Cheap contractors may not take the necessary safety measures to ensure the safety of their workers, leading to injuries and accidents. Such incidents can cause delays, increase project costs and even result in legal issues.

Selecting a contractor based on cost alone can also lead to a lack of communication and collaboration between the contractor and the project team. A contractor who doesn`t have the necessary resources to work with the rest of the team might cause delays in communication, slowing down the project`s progress.

In conclusion, the effect of cost-based contractor selection on construction project performance can be significant. While it may be tempting to select a contractor based solely on their cost, it`s essential to consider other factors such as their experience, expertise, quality of work, safety record, and ability to communicate and collaborate with the project team. By doing so, you can increase the likelihood of a successful project that is delivered on time and within budget.