TLDR: Choosing contractors based solely on price creates a cycle where contractors respond with minimum effort, leading to cost overruns averaging 28%. Homeowners who select the cheapest quote typically end up paying the same or more through change orders, delays, and rework. Properly budgeted projects show minimal price variance between qualified contractors, making fit and partnership the real differentiators. Studies show best-value selection costs only 1% more upfront but delivers 37% less cost growth during construction.
If you treat us like a commodity, we will do the same
When someone's first question is "What's your price per square foot?" we already know how this story ends.
It's not about the question itself. Cost matters, and any homeowner should understand their budget.
But when someone sends us plans with zero context about finishes, selections, or how we operate and just says "quote this," that's a red flag we can't ignore.
They're treating contractors like commodities. Interchangeable parts differentiated only by price.
And here's what we've learned after 25+ years building homes across Toronto: when you treat contractors as commodities, they treat you the same way.
The Optimism Factor
We call it the "optimism factor."
Homeowners who haven't been burned before tend to believe the lowest quote represents the best deal. They haven't experienced what happens when a contractor underbids to win the job.
The pattern is predictable. A project properly budgeted at $300,000 gets quoted at $250,000 by someone desperate for work.
The homeowner feels smart. They "saved" $50,000.
Then construction starts.
The Painful Route to the Same Number
Our should-have-been clients always come back with the same story.
They ended up paying what we originally quoted. Sometimes more.
Research backs this up: 85% of construction projects experience cost overruns, averaging 28% above the initial budget.
The route there is brutal.
When contractors don't take time to properly procure materials and plan the scope, they create problems that need fixing during construction. And fixing mistakes mid-project costs exponentially more than planning correctly upfront.
Construction rework alone accounts for 5-15% of total project costs.
In Toronto, it gets worse. Structural changes require permit resubmission. We've heard from could-have-been clients about waiting additional months because their cheap contractor didn't plan properly.
Those delays aren't just frustrating. They're expensive.
The Reciprocal Treatment Cycle
Here's what most homeowners don't realize: when a contractor wins a job purely on price, their behavior changes.
They're not trying to be difficult. They're trying to survive.
With already thin margins, they cut corners. They use subpar materials. They hire less skilled labor. They do the bare minimum to get the job done and hopefully salvage some profit.
There's no partnership. No collaboration. No bringing their full expertise to improve your project.
Just transaction. Just survival.
You commoditized them, so they commoditize their service to you.
What Actually Gets Lost
When projects are properly budgeted, there's minimal variance between qualified contractors.
The real conversation should be about fit. About partnership. About who brings the most value beyond just showing up with a hammer.
Studies show that choosing contractors based on best value rather than low bid costs only about 1% more upfront but delivers 37% less cost growth during construction.
That's not a small difference. That's the difference between a nightmare and a successful project.
Why We're Happy to Lose
We never want to win a project on price alone.
We're actually happy to lose those jobs. Because winning them means devaluing our services, cutting corners, and delivering less than our clients deserve.
Our family-owned business has built its reputation on thorough pre-construction planning, transparent pricing, and comprehensive project management. We offer these services at no charge upfront because we know proper planning protects everyone.
When clients choose us, they're choosing a partner who's invested in their project success from day one.
When they choose the cheapest quote, they're choosing the optimism factor. And that factor has a 28% cost overrun attached to it.
The question isn't whether you'll pay for quality planning and execution.
The question is whether you'll pay for it upfront with a partner, or pay even more for it later through change orders, delays, and rework with someone who's just trying to survive your project.
We've watched this cycle play out hundreds of times. The math always catches up.
Choose fit. Choose partnership. Choose contractors who treat your project like it matters, because you treated them like they matter.
The cheapest quote is rarely the best value. And in construction, you always get what you pay for.
Eventually.
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations and custom home builds (full interior renovations, home additions, lot severances, new home construction, garden suites, and laneway suites). Our goal is to help guide our clients through the process of building their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page. Learn more about our vision, mission, and values here.