Why contractors win on relationships, not the lowest bid

If you’ve been in trades or construction long enough, you’ve seen it: the client wants “three quotes”, picks the cheapest, and then everyone spends the rest of the project arguing about what was “included”. Trust gets shredded, margins disappear, and the job becomes a stress test instead of a success story.

On this episode of Built. Trusted. Chosen., I sat down with Eugene Gershman from GIS Companies. Eugene grew up around construction, ran contractor operations, and now focuses fully on development management. We covered what actually protects projects when markets tighten: strong relationships, honest fee structures, and refusing to cut corners on design and planning.

Here are the biggest takeaways I took from the conversation.

Cheap plans are expensive: don’t build off a “permit-only” set

Eugene shared a painful example: an owner bragged about negotiating a full architecture and engineering package down to a number that sounded wildly low for a major apartment project. The result was predictable. The drawings were good enough to get a permit, but not good enough to build cleanly. There were gaps everywhere, and those gaps get paid for later.

What hit me was Eugene’s point about responsibility in pre-construction. If you can see the plans are weak, you’ve got to call it for what it is and drill into it early. Otherwise you’re trying to “fix” design problems with site decisions, and that’s where timelines and budgets go to die.

For contractors and builders, this is a positioning moment. The client might think they’re saving money, but you can educate them that “cheap design” often becomes the most expensive part of the job.

Stop shopping like it’s online retail: construction needs real communication

Eugene described how inexperienced clients often approach construction like online shopping: hide behind a screen, submit an RFP, and expect a clean price back. Then they choose the lowest number without truly understanding what they’re buying.

Meanwhile, contractors are under pressure too. To win work, they submit a low bid, cut scope to get a foot in the door, and then try to recover through change orders. Owners get angry because they expected one thing and got another. Contractors get angry because they’re being asked to deliver more than what was priced.

This isn’t about “bad people”. It’s about a broken process with poor communication. And it’s exactly how trust gets eroded, job after job.

Compare contractors on fee and margin, not a fantasy total price

One of Eugene’s most practical plays was how he interviews contractors now. He said he doesn’t need them to “guess” the whole project cost. What he wants to see is how they value themselves: their margin, their fee, and their general requirements and conditions.

Why? Because quantities are quantities. You’re not going to pour “more or less concrete than you need”. If one number is different, you can get to the bottom of it. But fee and margin tell you how the contractor runs their business, whether they’re sustainable, and whether they can actually perform when things get tight.

To me, this is a powerful reframe for both sides. It shifts the conversation away from a race to the bottom and towards professionalism, transparency, and delivery.

You can’t build a building behind a computer screen

This line stuck with me because it’s blunt and true. Eugene talked about COVID-era expectations where some younger project managers wanted to work from home. His view was simple: get on site. You can’t see what’s really going on from a laptop.

And it’s not just about oversight. It’s about trust. Trust gets built when you show up, communicate face-to-face, and handle issues like an adult instead of an email chain. In construction, reputation travels fast. People in the field talk, and you can gain or lose credibility quicker than you think.

Stand out with “old school” human touches in an AI-noisy world

We also spoke on something broader: when everything starts to look perfect on paper, how do you choose? Eugene compared it to AI resumes being reviewed by AI. Everyone looks “dialled in”. Same with bids. Same with proposals.

His answer was refreshingly human. Show your work. Introduce yourself. Have the conversation. Even do the simple, old-school things that most people won’t bother with: a printed brochure, a handwritten thank you note, anything that signals you’re a real person who cares.

In a world where digital noise is rising, that human edge becomes a competitive advantage.

Next step

If you take one thing from this episode, let it be this: the contractors who win long-term don’t win by being cheapest. They win by being clear, present, and trustworthy, backed by solid design and real communication.

Eugene Gershman is a real estate developer at GIS Companies, where he helps property owners structure deals, secure financing, and co-develop projects from feasibility through delivery. He’s also the host of Real Estate Development: Land to Legacy.

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