Why is competitive bidding often considered counterproductive?

Competitive bidding is often viewed as counterproductive primarily because it can lead professionals to cut important design steps in order to provide the lowest possible bid. When companies focus solely on winning a contract through price competition, they may feel pressured to reduce costs by shortening the design process, limiting the scope of work, or overlooking critical components that ensure the integrity and quality of the project. This may result in subpar design solutions that compromise safety, functionality, or regulatory compliance.

In engineering and similar fields, the design process is essential for delivering high-quality outcomes. When design steps are omitted or rushed in the interest of lowering costs, the eventual outcomes may not meet the standards or expectations of stakeholders, leading to long-term repercussions such as project delays, increased costs down the line for revisions, and potential harm to the end users. Emphasizing quality and thoroughness in the design phase is crucial, and competitive bidding can undermine this if not properly managed.