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The Hidden Cost of Low Construction Bids

An unfinished building rests on a bending, cracked price tag, illustrating the risks of unrealistically low construction bids.

Construction suppliers remain under margin pressure. Recent industry reporting points to contractor input costs increasing faster than tender prices, while construction administrations continue despite some month-to-month improvement.

Buyers should be cautious about apparently attractive low bids. Unrealistically low margins can subsequently appear as aggressive change claims, disputes, quality problems, supply-chain failures or insolvency.

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