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When the Lowest Bid is Best and When It Costs You the Most

by | Nov 2, 2021 | Asphalt, Commercial, Residential | 0 comments

As a business owner or maintenance manager, your goal is to add more money to your company’s bottom line.

When choosing an asphalt contractor, you want to save money.

But it’s easy to be penny wise and pound foolish.

There is nothing wrong with getting a great deal and saving money.

In fact, we’ve been the lowest bidder on projects on several occasions.

But what do you do when the lowest bid is thousands upon thousands of dollars lower than everyone else’s?

Is it the deal of a lifetime or a scam waiting to happen?

Local contractors can be tempted to skimp on materials or in other ways just like out-of-town companies.

Below is a 2-step guide you can use to evaluate whether the deal you are getting is a definite scam or not.

Step 1
Find out the cost of materials for your project.

What is the dollar cost of the materials spec-ed for your project?

Not all companies will tell you this, but most honest ones will. If you ask us, we will tell you how much the project costs in materials and labor.

Step 2
Compare the material cost to the total estimate.

Once we actually saw a company (we won’t name names for obvious reasons) provide an estimate that was so low it didn’t even cover material costs, much less labor, insurance, permits, bonds, overhead, etc.

If an estimate doesn’t cover every expense, then what is missing? Where are they getting their profit? Are they skimping on materials or using cheap, low-quality products? Are they skimping on labor or workmanship?

Skimping on materials is one of the most common asphalt scams in Utah because it is difficult to detect until it is too late.

Even reputable local companies skimp on materials sometimes to be more competitive or make extra profit.

Or is the company underinsured? Should a waterline be hit on your property, you will be left holding the bill if they do not carry adequate insurance.

At Top Job, we actually carry more than the legally required level of insurance to protect you.

The most important question to ask is how to minimize your costs both now and in the future.

What good does it do to save $5k today if you are just digging a money pit for your business to fall into next year?

Seal Coat Case Study

In an effort to minimize both long-term and short-term costs, Associated Foods’ Corporate Office in Salt Lake City, Utah wanted to find out which company’s seal coat service lasted the longest.

They knew that the longer their sealcoat lasted, the more money they would save for many years to come.

Associated Foods brought in the top companies in Utah and each one laid a seal coat test patch in their asphalt parking lot. Their parking lot is one of the highest traffic, highest wear, asphalt parking lots in all of Salt Lake.

The results were amazing. Top Job Asphalt’s premium seal coat not only looked better but held up longer and stronger under the enormous strain of constant semi-truck traffic.

Dollar for dollar, you cannot save more money, or experience less hassle, than by choosing Top Job Asphalt and their premium seal coat.

asphalt seal coat slc utah

 

You can see the proof for yourself if you drive by Associated Foods’ south entrance in Salt Lake.

 

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What Our Customers Are Saying

Very impressed with the quality of their work and the organization of the company. The project estimator was spot on as to when the bid would be received and the work was professional  from start to finish. I appreciated the opportunity for a walkthrough inspection after the crack filling was completed as I had some very large cracks in the asphalt. I give this company a ten out of ten (which I really do) and highly recommend them.

Paul Pratt