Why Does Tendering Feel Like a Race to the Bottom?

For many construction companies, tendering has become synonymous with one thing: competing on price.

Every tender requires significant time and investment. Estimators, commercial teams and project managers spend countless hours reviewing drawings, assessing risk, obtaining supply chain quotations and producing detailed submissions. Yet despite all that effort, it can often feel as though the only number that matters is the price at the bottom of the page.

At Hawes Construction, we’ve seen first-hand how this approach can create unnecessary pressure across the industry. While competitive pricing is essential, selecting a contractor on cost alone doesn’t always deliver the best outcome.

Lowest-price tendering often forces contractors to reduce already tight margins simply to remain competitive. Over time, this limits investment in people, training and innovation, while increasing commercial risk for everyone involved. The result can be greater pressure on project teams, more contractual disputes and, ultimately, projects that cost more than originally anticipated.

The reality is that price isn’t the same as value.

Every construction project is different. Ground conditions, design development, programme constraints and supply chain challenges all introduce risk. Experienced contractors such as Hawes Construction recognise these factors and price accordingly, providing clients with greater certainty throughout the project. A lower tender may simply reflect different assumptions rather than a genuinely more efficient solution.

That’s why procurement should look beyond the headline figure. The best outcomes are achieved by asking wider questions: Which contractor understands the project best? Who has the relevant experience? Which team is most likely to manage risk effectively, deliver on programme and work collaboratively with the client and design team?

At Hawes Construction, we believe early collaboration is one of the most effective ways to improve project outcomes. Early Contractor Involvement (ECI) allows practical construction expertise to influence design decisions before costs are fixed, often leading to better buildability, more accurate budgets, fewer design changes and greater certainty during construction.

Better tendering also starts with better information. Clear documentation, realistic programmes and transparent evaluation criteria enable contractors to prepare accurate, competitive submissions based on facts rather than assumptions. This benefits both clients and contractors by reducing uncertainty and improving decision-making.

Competition will always be an important part of procurement, but it should reward more than simply the lowest price. Quality, technical expertise, collaboration, sustainability and certainty of delivery all contribute to the long-term success of a project and should carry equal weight during the tender process.

Ultimately, construction isn’t a commodity.

Every project is unique, and choosing the right contractor is about far more than finding the cheapest quote. By placing greater emphasis on value as well as cost, clients can achieve better outcomes, contractors can continue investing in their people and expertise, and the industry can move away from the race to the bottom towards a more sustainable future for everyone.