Any stories of construction costs far exceeding original estimates?

[Anonymous]

And how it played out? We are going through a basement renovation and costs are coming in 50% or so higher than the planning phase. I’m not sure whether to be upset at the architect or the GC (cost plus contract) but it really sucks.

[Anonymous]

I got an estimate in December 2021 for kitchen remodel. $50k (10 x 10 kitchen, not too luxurious.)
In April 2022 the estimate was revised to well over 70K. I brought it down to 60 by eliminating pendant lights over the sink, a couple of glass-front cabinets, and switching from solid hardwood floor to engineered wood (thin layer of hardwood on top of cheap core.)
Work started July 2022 and ended September 2022. Ended up costing $70k even after my cuts.

[Anonymous]

What's driving the cost up?

Our house is old and the GC warned us that once the walls open, unexpected issues could come up and it would be extra. So yeah, we definitely faced that.

But outside the unexpected, why is your cost going up so much? My guess would be your GC did a poor job calculating the initial estimate. That would be on him.

[Anonymous]

Anonymous wrote:What's driving the cost up?

Our house is old and the GC warned us that once the walls open, unexpected issues could come up and it would be extra. So yeah, we definitely faced that.

But outside the unexpected, why is your cost going up so much? My guess would be your GC did a poor job calculating the initial estimate. That would be on him.

Did you miss the thread where people were complaining that grocery baggers should be paid a living wage (i.e. enough to rent an apartment and raise children?)
Do you think that people with actual hands-on construction skills are willing to work for the same money as a grocery store employee?
Wages rise, prices rise, wages have to rise to meet prices. Labor is by far the biggest expense in these projects.

[Anonymous]

Kitchen Reno: original estimate 50K. Luckily we thought it was ridiculous and didn’t think for a minute we could do what we wanted for 50K. Ended up being about double that. I think the estimate was assuming a different layout, etc. Luckily, our budget was pretty flexible and we were more focused on getting done what we wanted, and were expecting a higher estimate. If your budget is less flexible you will need to bring in 2-3 estimates and know in advance if you plan on major re-arranging, etc.

[Anonymous]

I'd be more interested in stories of a construction project that stayed on schedule and under/within budget. You should always expect (and plan for) projects to go over. It happens all the time

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's driving the cost up?

Our house is old and the GC warned us that once the walls open, unexpected issues could come up and it would be extra. So yeah, we definitely faced that.

But outside the unexpected, why is your cost going up so much? My guess would be your GC did a poor job calculating the initial estimate. That would be on him.

Did you miss the thread where people were complaining that grocery baggers should be paid a living wage (i.e. enough to rent an apartment and raise children?)
Do you think that people with actual hands-on construction skills are willing to work for the same money as a grocery store employee?
Wages rise, prices rise, wages have to rise to meet prices. Labor is by far the biggest expense in these projects.

What a strange and condescending response.

I'm replying to OP based on the assumption that the original estimate, signing of contract, and actual construction happened fairly close together, rather than very spaced out and thus labor costs would be much higher than the original estimate. If that were the case OP should/would have specified and that would be the obvious culprit. The estimate and contract should include labor cost. I don't know any contract that does not.

[Anonymous]

Are they not showing and telling you the reasons why. If they aren’t legit hold their feet to the fire.

[Anonymous]

We had our 3100 sqft basement finished during COVID. We went with a design build firm that quoted us in writing a not to exceed price of $100k. The allowances given to us were for mid/upper grade finishes. We came in $16k once our selections were completed.

They mention all this on their website and not to mention all the work is backed by a 12 month and 24 month punch-out list.

[Anonymous]

Anonymous wrote:We had our 3100 sqft basement finished during COVID. We went with a design build firm that quoted us in writing a not to exceed price of $100k. The allowances given to us were for mid/upper grade finishes. We came in $16k once our selections were completed.

They mention all this on their website and not to mention all the work is backed by a 12 month and 24 month punch-out list.

Let me add the contract was signed 3 months prior to start date. So no cost increase from the original price.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What's driving the cost up?

Our house is old and the GC warned us that once the walls open, unexpected issues could come up and it would be extra. So yeah, we definitely faced that.

But outside the unexpected, why is your cost going up so much? My guess would be your GC did a poor job calculating the initial estimate. That would be on him.

Did you miss the thread where people were complaining that grocery baggers should be paid a living wage (i.e. enough to rent an apartment and raise children?)
Do you think that people with actual hands-on construction skills are willing to work for the same money as a grocery store employee?
Wages rise, prices rise, wages have to rise to meet prices. Labor is by far the biggest expense in these projects.

What a strange and condescending response.

I'm replying to OP based on the assumption that the original estimate, signing of contract, and actual construction happened fairly close together, rather than very spaced out and thus labor costs would be much higher than the original estimate. If that were the case OP should/would have specified and that would be the obvious culprit. The estimate and contract should include labor cost. I don't know any contract that does not.

I apologize for being condescending, it just seems obvious to me that we are living in a time of unprecedented inflation which is why these estimates would be "miscalculated."

[Anonymous]

Don’t you have a contract?

[Anonymous]

The only certainty in construction is that it will go over-budget.

[Anonymous]

Anonymous wrote:We had our 3100 sqft basement finished during COVID. We went with a design build firm that quoted us in writing a not to exceed price of $100k. The allowances given to us were for mid/upper grade finishes. We came in $16k once our selections were completed.

They mention all this on their website and not to mention all the work is backed by a 12 month and 24 month punch-out list.

You lost me at 3100 sq foot basement.

[Anonymous]

Sorry this is happening, it can be really distressing. We did a big renovation, including an addition, and I don’t remember the exact numbers, but we did blow past our original budget. In our case, the contractor was up front about where costs were coming from when we asked about it. It all checked out but was still stressful to write those checks.

I think it’s pretty normal for costs to exceed estimates, especially in this era of inflation/supply chain issues, but definitely don’t be afraid to ask them to justify it.