Does awarding a contract to the lowest bidder ensure more collaboration among parties?

Awarding a contract to the lowest bidder does not inherently promote better collaboration among the involved parties. Instead, it can often lead to disputes due to several factors. When a contract is awarded based solely on the lowest bid, the emphasis is placed on cost rather than on the overall value, quality, or the relationship between the parties. This might result in contractors cutting corners to meet budget constraints, which could undermine the quality of work and lead to conflicts over expectations and deliverables.

Moreover, lower bids may not account for unforeseen circumstances or complexities of the project, leading to potential cost overruns or project delays that can cause friction among stakeholders. The focus on cost reduction can also discourage open communication and collaborative problem-solving, as parties may be more inclined to prioritize their own interests over collective goals. Therefore, while the lowest bid may seem financially advantageous initially, it does not guarantee a collaborative environment necessary for successful project execution.