"The cutthroat nature of competition is tough on contractors, but it also imposes risks on project owners as well. “If someone comes in and makes a mistake or low-balls a project, it is important that owners make sure [the contractor] is building it right,” says Rich Thorn, president and CEO of the AGC chapter in Salt Lake City.

With new bidders ranging far afield, some owners are questioning the capabilities of some contractors bidding on their projects, says John Saliba, vice president of Irvine, Calif.-based FTR International Inc. “The most interesting thing is having these firms—who no one has ever heard of before—winning bids,” he says.

There are concerns the quality of work on some projects will suffer, Saliba says. “People who should not be bidding are bidding,” he says. “It is kind of sad because the owners will see that the number of claims is going to increase down the road as these projects are completed.”


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