The most common reason home renovation projects end up costing more than expected is inaccurate estimates. This can occur when estimators fail to fully understand the project’s scope, don’t account for risks, or make uneducated predictions ¹. In fact, a survey found that roughly 30% of construction companies experience regular overruns due to profits being less than expected based on the estimate ¹.
Other common reasons for cost overruns in home renovation projects include:
- Poor planning and design: Last-minute modifications due to poor designs or planning can hold up the project and increase costs ¹.
- Change orders: Assuming change orders won’t happen or failing to allocate adequate resources for adjustments can lead to cost overruns ¹.
- Inaccurate construction project estimates: Estimates that are too low or unrealistic can lead to cost overruns ².
- Serious project design errors: Design deficiencies, such as poorly designed or inaccurate plans, can lead to costly mistakes and delays ².
- Administration errors: Miscommunication, poor document management, and inadequate micromanagement can also contribute to cost overruns ¹.
To avoid cost overruns, it’s essential to conduct thorough planning, use construction management software, and establish clear communication channels .
