What are the implications of a "lowest bid" award policy?

The "lowest bid" award policy implies that projects are awarded to contractors who offer the lowest price without necessarily considering other critical factors such as quality, experience, and qualifications. When cost is the sole deciding factor, there is a risk that the selected contractor might not meet the necessary standards or have the required experience to carry out the project effectively. This could lead to compromises in quality, as the focus shifts primarily to minimizing expenses, which might result in cutting corners or using inferior materials.

Additionally, a focus on the lowest bid can sometimes attract inexperienced contractors who may underbid to win the contract. If those contractors are not adequately qualified, it could result in delays, safety issues, or subpar workmanship, ultimately leading to additional costs for the owner in the long run. Thus, while the lowest bid might initially appear to be a cost-saving strategy, it can have negative implications for the overall quality and sustainability of the project.