The oldest trick in bidding: low number, expensive change orders
By Tara Lilley, Founder of PayBild ·
It's one of the oldest plays in contracting. Bid the job low enough to win it. Make the real money back later, one change order at a time.
Here's how it played out for Kevin.
Three bids for one bathroom
Kevin just bought his first home. The bathroom needed a full redo. He did everything right. He got three bids.
- Bid one: $14,000
- Bid two: $14,000
- Vince's bid: $8,000
Vince's bid was short. Not much detail. But Vince was friendly, confident, and ready to start next week. Kevin picked him. Who wouldn't?
Then the walls came open
A few days in, Vince called Kevin into the bathroom. He pointed at an old pipe inside the wall. "Yeah, that's not in the bid. That's extra."
Then it happened again. And again. Old wiring. A soft spot in the subfloor. A bigger vanity "the plans really needed."
Each extra seemed small on its own. But the walls were open and the bathroom was gone. Kevin felt like he had to say yes.
The final bill: $15,500. That's more than the "expensive" bids he turned down.
Why it works
Once work starts, a homeowner is already invested. The wall is open. The bathroom is out of use. Stopping to fight over a change costs something too: time. Some contractors count on that pressure to do the arguing for them.
A written, signed, priced change order is your one chance to say no before the money is spent. That's exactly why a bad-faith bidder wants to skip it.
Not every low bid is a trick
To be fair: plenty of low bids are honest.
- An efficient contractor with low overhead
- A slow month
- A Pro who wants the job for their portfolio
But the pattern is real. So it's worth knowing the signs.
The warning signs
- A bid way lower than the others, with no clear reason why
- Thin, vague details. The less that's written down, the more can be called "extra."
- A contractor in a rush to start, and slow to pin down the details
How to protect yourself
- Get every detail in writing before you sign. What's included, and what's not.
- Ask why the bid is so low. A good contractor has a real answer.
- Every change gets priced and signed before the work starts. Not after.
- Something new comes up? Pause and get it in writing. That's your chance to say no.
How PayBild is built around this
- Every change order on PayBild is priced and signed before the work starts.
- There's no way to "figure out the number later."
- Milestones are tied to defined, agreed work, so the scope can't quietly drift.
The price you agreed to stays the price. Unless you sign off on a change.
See how PayBild protects the scope you agreed to
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Kevin and Vince are made-up examples, based on real situations. General information, not legal advice.