An old officer friend of mine who went SF always used to say "I take great comfort knowing that every piece of equipment I trust my life to was built by the lowest bidder."
Aren't the lowest bidders usually lowest for a reason, and not because they discovered cheaper, more efficient ways to deliver high quality?
Your point is valid, though, all contractors have to meet the state requirements for quality control and inspection. It's not as if these contractors win the job and get to go build whatever they want. They still have to follow standards and specifications, whether it was in their bid or not. However, if a contractor comes in with a screaming-low bid, you can bet he's doing everything he can to build it as fast as possible while still meeting the minimum requirements.
More and more DOTs are moving to a qualifications-based selection approach. In Minnesota, where I live, they do most of their big projects through programs that select contractors based solely on their qualifications and price doesn't become a factor until after the contractor is selected.