Low-bid procurement has frustrated contractors for decades — but according to consultant Matt Verderamo of Well Built Construction Consulting, there’s a way out of the race to the bottom.

“Do you think firms like Turner, Bechtel, Kiewit, DPR, Hensel Phelps and more are winning all their work because they are low?” Verderamo asks. “Good news: It’s not the case.”

He argues that the biggest obstacle is mindset. Many contractors simply don’t believe they can break free from always bidding low. “You must believe that your company can change the status quo and start negotiating work, otherwise you never will,” he says.

Another trap? Failing to stand out. “Yes, experience and quality matter, but they are not enough to negotiate work,” Verderamo writes. “Every contractor says they have experienced staff who build with high quality. So, while it may seem like a differentiator to you, your competition is saying the exact same thing.”

Some firms also get stuck bidding cheap work just to keep their crews busy. “While this can be a sensible business decision, it can also act like quicksand for your business,” Verderamo says.

He recommends contractors balance this by continuing to win low-bid jobs while steadily building relationships for higher-margin, negotiated work. “Eventually, you build up enough negotiated clients to say ‘no’ to the low-bid opportunities in your pipeline,” he says.

Verderamo also cautions against chasing every job that comes along. “If you’re always bidding, you’re probably burning out your team… At the end of the day, your goal should never be to bid; it should be to win!”

To start escaping the low-bid trap, Verderamo suggests asking key questions: Are we bidding too often? What do we do that’s truly better? Are we clear on our ideal clients and projects?

For contractors ready to break the cycle, Verderamo lays out practical first steps:

Define your ideal client and project. Figure out which clients value your expertise — and which jobs play to your team’s strengths and profitability sweet spot.

Use a clear go/no-go process. Be brave enough to say no to work that doesn’t fit. Focus your energy on the right opportunities.

Build a culture of business development. “Relationships matter for negotiating work,” Verderamo says. “The most successful contractors create a culture where BD is everyone’s job.” Supers, PMs and field leaders can all play a role in earning repeat business.

Train estimators in sales basics. “Sales” shouldn’t be a dirty word in construction, Verderamo argues. Even estimators benefit from knowing how to run persuasive meetings, negotiate, and understand the client’s decision-making process.

Industry observers say this advice is timely as 2025 brings intense labor challenges, tight margins, and more owners choosing value-based selection instead of just low bids. By focusing on winning instead of bidding, contractors can protect margins, build strong client partnerships and avoid the burnout that comes from chasing every job.

Originally reported by Matt Verderamo in Construction Dive.