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Cost overruns are an unfortunate but real scenario for the construction industry as a whole. These occur when, due to unexpected events or changes to the construction plan – the client is left with a bill bigger than first planned for. This can be a big worry for those who have a tight budget with little breathing room. After all, the last thing you want to do is to be forced into sacrificing the final touches of your build in order to cut costs.
Some of these cost overruns exist due to changes in construction that go beyond the builder’s control. For instance, latent site conditions that pause production and prolong overall construction time. It’s important to acknowledge that such events aren’t often included in the builder’s fixed quote, and that the client is liable to pay.
Conversely, there are times when cost overruns exist due to changes from the client’s end. It’s not uncommon that during your construction and as you see your design become brick and mortar – that you may decide to change certain elements or add certain features. Although this may not seem like you, a custom home build is a long process – and during that process your needs and wants may change slightly or alter completely.
That’s why your builders will talk to you the importance of having a contingency when you plan your build with us. As experienced custom home builders in Wollongong we won’t keep you in the dark about cost overruns – we recognise that cost overruns are a reality and that shouldn’t be ignored. Hence, we recommend that simply having a contingency in your budget is a great way to reduce your exposure to cost overruns. Further, with a contingency comes security and with security comes relief. Don’t spend your days worried about out of pocket expenses because you put all your eggs into one basket.
Having a contingency will allow you and your family to keep an open mind. Depending on what you put aside, you may be able to change the scope of your build if you find a new product or item that you’d love to implement. Therefore, you shouldn’t look at the contingency as a begrudged sacrifice to elements of your dream home. Instead, you should view your contingency as breathing room and an opportunity to mould your design as it progresses. Furthermore, if you make it to the end of your build and find yourself underwhelmed by what you see – then having room for a contingency may enable you to use your Wollongong custom home builders to put the final touches on that you didn’t expect to be able to afford at first.
Overall, having a contingency in your budget before construction is a safe and smart idea in avoiding cost overruns. At Black Diamond Constructions your Wollongong custom home builders will encourage you to implement a contingency for peace of mind. For more information, contact us via our website or call 0423184554.