Choosing contractors based solely on price creates a cycle where contractors respond with minimum effort, leading to cost overruns averaging 28% due to lack of accountability and poor planning. 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.
Eight homeowners are now suing Mike Holmes-backed AGM Renovations for $1.3 million in damages. One family's $150,000 loan got maxed out with only 30% of their project completed before AGM announced it was permanently closing.
In our experience, over ninety percent of homeowners who get construction pricing after securing permits either abandon their project or chase the lowest bidder. We see this pattern a lot. Beautiful architectural plans meet construction reality. The gap between expectation and cost becomes a chasm. The problem isn't the homeowner's budget. It's the process.
