Price should not be only consideration
 

Engineering News
May 13th, 2004

Beware of accepting the lowest tender when embarking on building work, Colin De Kock, executive director of the Gauteng Master Builders Association (GMBA), has warned property owners and developers.

De Kock says there are four important reasons why it should not always be assumed that the lowest tender is best:

  • The contractor may have accidentally or on purpose "forgotten" to quote for all the items of work which could then lead to claims for extra compensation or disputes;
  • the contractor may be inexperienced and make use of unqualified labour and/or inferior materials;
  • certain contractors rely on turnover and under-quote and use deposits to finance their business; and
  • the contractor, again because of lack of experience, may not have the necessary equipment to perform efficiently, whereas the opposition has to make allowances for replacement and maintenance of his/her plant.

"It is always advisable to inquire if the builder being dealt with is a member of the Gauteng Master Builders Association to ensure peace of mind," De Kock said.