The Real Cost of Cheap Contractors (And Why We Don’t Cut Corners)
- PropInvest Co.
- 6 days ago
- 3 min read
A behind-the-scenes look at how cutting corners on build quality can derail entire developments, and why we’ve built a contractor model that protects our investors first.
If you’ve ever been involved in property development, you’ll know the warning signs.
The contractor with a too-good-to-be-true quote.
The vague line items.
The “we’ll sort that later” promises.
The missed deadlines that turn into six-month delays.
At PropInvest, we’ve seen first-hand how cheap contractors don’t just cost money, they cost trust, time, and in worst-case scenarios, the entire viability of a development.
That’s why we never chase the cheapest quote. We chase the right team for the job.
Here’s why that mindset shift matters, and what it means for our investors.
What “Cheap” Really Means in Development
When we say “cheap contractor,” we’re not talking about lean, efficient builders who work with agility. We’re talking about teams that underprice the job up front and overspend the budget through the back door.
That can look like:
Unrealistic timeframes that slip repeatedly
Low-quality materials that fail early
Poor workmanship that needs redoing (at your cost)
Safety issues that stall the entire site
Incomplete work that fails building regs or causes delays at resale
Thin teams who stretch themselves across too many sites
On paper, a cheap quote looks appealing. But in reality, it’s often the most expensive mistake a developer can make.
What Bad Contractors Cost You
We’ve heard the horror stories. Some, we’ve lived through early in our journey.
A cheap quote leads to delays, which leads to extended finance costs, which leads to tighter investor margins. Add in rework, inspections, friction on site, and suddenly your build programme is 3 months over, your costs are up £60k, and your reputation is under pressure.
Here’s what poor contractors often lead to:
Budget overruns: The “cheap” build now costs more than the mid-range quote you ignored.
Timeline slippage: Every week of delay increases costs (labour, finance, insurance).
Stress: For the developers, the investors, and the buyers waiting on completion.
Credibility loss: If you promised a timeline or budget to an investor, you now have to walk it back.
How PropInvest Selects Contractors
We’re proud to say that today, our projects are powered by high-quality, vetted, professional teams. And our process for selecting them isn’t just about price, it’s about performance.
Here’s how we do it:
1. Track Record Over Talk
We don’t just look at a contractor’s quote, we look at their history. What have they built? What’s their snag rate? Do they finish well, or just start strong?
We visit their previous sites. We speak to their past clients. And we bring them in early to assess the scope before any agreements are made.
2. Transparent Scoping
We spend time upfront on detailed scope of works documents. This avoids vague assumptions, unexpected add-ons, or disagreements mid-way through.
It’s time-intensive, but it’s the difference between controlled costs and spiralling extras.
3. Live Cost Tracking
We use detailed project management tools, including Gantt charts and contractor onboarding packs, so every cost is accounted for and visible in real time.
This is shared with our investors too, via Google Drive, so nothing is hidden and everyone is aligned.
4. Right Team for the Right Job
A team that’s great at flips may not be right for barn conversions. A new build team may struggle with listed buildings. We match project complexity with appropriate contractor experience.
We don’t reward loyalty for loyalty’s sake, we reward consistency and skill.
5. Contracts That Protect Everyone
We use clear, professional contracts that protect both sides. Retention clauses, milestone payments, and exit strategies are always in place to protect delivery.
Why This Matters to Investors
If you’re investing £200k–£500k into a development project, the biggest risk isn’t planning, it’s execution.
If a site stalls because a contractor walks off, or corners are cut and resales fall through, your capital is exposed. That’s why we obsess over who builds our projects.
Because if they fall short, we all do.
Here’s what our investors get as a result of our procurement process:
Cleaner timelines
Fewer cost surprises
Higher resale value (quality build = confident buyers)
Less stress from uncertainty and miscommunication
More trust in the process, leading to repeat investment
What Next?
Build quality is the backbone of any development.
You can have great planning, great sourcing, great capital, but if your build team cuts corners, you’ll pay for it ten times over.
At PropInvest, we’ve learned that lesson the hard way, and it’s why we now run one of the tightest contractor onboarding and project management systems in our space.
Because in this market, quality isn’t a luxury. It’s the smartest investment you can make.
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