Preventing Budget Overruns During the Construction Process
A budget blowout during construction can be very discouraging for homeowners. However, with careful planning, and the help of the right professional, you will be able to congratulate yourself for staying on schedule.
It is important to get an accurate quote at the beginning of your build. A builder’s ‘free quotation’ has a less than 20% chance of being accurate.
As with anything else in life, what you pay is what you get. Builders who charge a fee for a quote will use a formula to calculate the costs and give you an exact breakdown of materials and labour. You’ll be able to relax a great deal more if you pay for a builder’s ‘cost plan.’
Most people don’t know what price cost items and provisional sums are. The builder will give an estimate for these parts because they can’t accurately quote them early. Many people get a nasty surprise when builders ‘lowball’ these numbers.
You should also find a builder with a track record in building the kind of house you want. Find a local renovation specialist who has a proven track record. Do not stop there. Speak to their previous clients, and even subcontractors.
It is not uncommon for the cost of preliminary work to blow out if you have a challenging site. Labour costs can also be blown out due to client delays. You should choose a builder that has a well-defined system to program the project before it begins. Also, get your fixtures and fittings selections in early enough to avoid delays. Builders who are proactive will ask for these items early and demonstrate a proven method for doing so.
I recently heard of a story about a man who went to an architect to get he project estimated at $700,000. The two quotes from builders were $1,500,000 & $2,000,000.
It can mean that some projects are never started or abandoned halfway through. A trusted and experienced builder can provide you with a detailed cost plan.
