Free MHIC Training

Should you match a lowball bid to win a job?

Short answer. No. A bid far below the true cost forces skipped permits, unlicensed subs, cheap materials, or abandonment. Offer a reduced scope instead, stated explicitly in the contract and still built to code.

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Jordan Price

Real estate investor who flips houses

You walk the property with Jordan. Your honest estimate is $38,000 for code-compliant work with permits. Jordan laughs.

"$38K? I'll find someone who'll do it for $22K. There's always someone."

  1. Correct

    The contractor who takes a $22K bid on $38K of work will either skip permits, use unlicensed subs, install substandard materials, or abandon the project when the money runs out. Six months later, the buyer of Jordan's flip discovers unpermitted work, and SOMEONE gets an MHIC complaint. Better it's not you. Your license is worth more than Jordan's flip margin.

  2. Smart compromise

    Reducing scope to match budget is professional. Focus on high-impact cosmetics (kitchen, bathrooms, paint, flooring) and exclude structural work that requires engineering and expensive permits. Be explicit in the contract about what IS and ISN'T included. Make sure the reduced scope still meets code for the work you're performing. A smaller job done right beats a big job done wrong.

All 13 running a compliant business questions

  1. What records should a Maryland contractor keep?
  2. How many projects can you take on before quality suffers?
  3. How do you estimate honestly for a flipper on a tight budget?
  4. Should you match a lowball bid to win a job?
  5. Who is liable when a client tells your crew to cut corners?
  6. How do you handle a client's sticker shock?
  7. How should you structure a payment plan for a returning client?
  8. Are weekly progress reports worth the effort?
  9. What grants help disabled veterans pay for home modifications?
  10. How does contractor burnout lead to MHIC complaints?
  11. What is the most important thing to know for the MHIC exam?
  12. What one habit keeps contractors out of trouble with the MHIC?
  13. What advice would you give a newly licensed Maryland contractor?