This may save some money, but in the long run it can affect quality and the overall consumer satisfaction with the builder. Accepting the lowest bid means the sub-is going to cut corners wherever they can to make their own profit, and that leads to poor quality and problems down the line. In addition, many subs hire pieceworkers to complete their jobs at the cheapest rate possible, and this leads to shoddy work completed on the fly, rather than quality work done right and with pride. Pieceworkers want to complete as many jobs as possible in the shortest amount of time, and this never leads to quality. For example, a finish carpenter is paid $100 to complete the trim in a condo unit. He or she does not work for three days, and then, in an attempt to make up for lost time, they rush through several units in four days so their paycheck is enough to last them through the week. While those units may pass inspection, they were not completed with real attention to...

To combat this, construction companies should not hire subs that pay by piecework. Instead, they should employ the workers themselves, train them effectively, and pay them a decent wage. This would lead to less personnel flux in the industry, and ultimately lead to higher quality, as well.
In addition, developers and contractors should train their personnel and instill a desire for quality in them, leading to greater overall quality in the construction. Construction workers should be rewarded for high quality and craftsmanship in their work, rather than for completing the most jobs in the least amount of time. Many contractors suffer from a bad reputation because they do not demand quality, and implementing these changes in the industry would produce better quality buildings, more job satisfaction, and greater consumer approval with the building process.