I was talking with a homeowner in Wichita who just had his home remodeled. He was super happy with the job that was done by the contractor. He went on to tell me that he was pleased with the quality and said the contractor did a nice job. He then went on to say, “but man, he kills me with all his ‘extras.’” The contractor had told the homeowner what the price would be, but at the end of the job he added costs (or “extras”) to the bill that he had missed in the original proposal. The homeowner was unhappy with this surprise at the end of the job, and I don’t blame him. No one likes a job to run over-budget!
Here are some reasons the final bill could be higher than your original contract:
Ambiguity:
Many homeowners do not know what they want, and the contractor’s don’t know either. So they begin the job hoping to figure it out along the way. They might figure it out, but who knows what the costs will be! A contractor should work with the homeowner to figure out what they want and get everything nailed down in a fixed price contract. That way, everyone knows what the final bill will be.
The Low Baller:
I’ve heard of many contractors intentionally leaving things off the estimate so their price will be the lowest quote in order to get the job and then come back and nail the homeowner with “extras.” A good contractor will provide details on what they will be providing for the job. It is a good idea for the homeowner to call a contractor’s references to ask if the job came in on budget.
Changes:
Changes can kill a budget! Even though the contractor and the homeowner work hard at coming up with all the details, sometimes things just look different when the project is underway. That is understandable. Also, there could be some unforeseen problems that need to be dealt with. It is a good idea for the homeowner to set aside some extra money just in case they want to change their mind. The contractor should provide pricing on how much these changes will cost before proceeding with the work. You should still know what the final bill will be!
Our team at Pinnacle Homes understands these problems. We try to be as detailed as possible up front so there are no surprises. Sometimes we will put in contingencies into the proposal if we think there could be a problem. We have processes in place to ensure you do not have to worry about your project running over budget.
What about you? Have you had a project run over budget? Why did it happen? Leave a comment below!