For many contractors, one of the most important steps in doing business is bidding on jobs. To be effective and successful in the bidding process, contractors need to know the market, costs, and expenses associated with their trade. Some contractors look to secure business by placing bids way under cost and with a completion date much sooner than their competitors. While these types of bids look good to those taking them, it can open individuals up to lengthy breach of contract disputes when a contractor's promise to deliver is a no-show.
For businesses requesting bids on a project, especially a large one, there could be a number of contractors interested. With stiff competition, contractors likely want their bid to be the most attractive, which may lead them to guarantee work for a price and on a timeline that is just not feasible. Typically, bidding on a job takes heavy consideration. When that consideration is given simply to seal the deal, it leaves room for issues that can impact both the contractor and who they're doing work for.
Any number of unforeseen problems can impact the timeline and cost of a job considerably. Depending on what is outlined in the accepted bid, these changes could lead to a breach of contract on the contractor's part. Contractors new to the bidding game may not understand just how much is at stake when a contract is breached. Contract disputes can be lengthy and expensive, and seriously damage an individual's reputation.
Whether the work is not completed on time or at all, substandard or not as promised, contractors promising the world should be cautious. While cost effectiveness and time efficiency is something every business wants, hiring a contractor that may cut corners to deliver it, or doesn't deliver at all, is not. If you have hired a contractor and are facing a possible breach of contract dispute, you may benefit from speaking to an experienced attorney.