Five Reasons Why Your Renovation Projects Keep Going Over Budget!

Time and time again in our line of business, we see people embarking on their dream of renovating their work spaces only to find they have gone way over budget. While they may start off with a very clear idea of what they want and with the best of intentions, things can go wrong very quickly.  There is a plethora of reasons for cost overruns in commercial renovation project. Let’s take a look at some of them:

Design Errors

Design errors have been identified as one of the common reasons for cost overruns in commercial renovation projects. Designs that are done without ample examination of the site may contain errors in the form of omission or misrepresentations. This will also cause omissions in the project cost estimation which leads to extra work and thus results in renovation budget blowout. Achieving error free designs requires proper planning, extensive investigation, reviews and good communication between the client, design team and commercial contractor. 

Low Quality Documentation

Vague or low-quality documentation can affect the accuracy of price estimates. When incomplete documentation is used everyone involved in the quoting process has to make assumptions. This leaves room for error and costing inaccuracies.

Making Changes On Site

Change orders are often costly because they often include construction delays, material rush orders, design changes or even the tearing out and rebuilding of a finished item.
When you are in the planning stage, making changes is relatively inexpensive. However, once the project has commenced, every change will cost both time and money. So, if late changes are a must, be prepared for renovation cost overruns.

Spending Too Much Money On the Wrong Areas

When planning an office renovation, invest primarily on those areas that will make the biggest difference to the quality of the finished project.  Determining what to rehab or replace is another question that must be decided mutually between the client and the commercial contractor. Look at what you are trying to achieve and plan the best way to get there. Keep the budget in the front of your mind when making decisions. Being budget conscious from the start is far better than running out of money halfway through a project.

Choosing The Wrong Contractor

Clients should not sign up with the first contractor they meet or was recommended, and they should never choose a contractor solely based on price. Clients should always get at least three quotes and spend time analyzing and comparing the prices, contractors, and deliverables before making their decision. Choosing a random contractor who has no experience in handling the renovation project will lead to poor quality work, schedule delays and cost overruns.

In conclusion, although cost overruns may seem very inherent in most renovation projects, they don’t have to be! By setting clear expectations and specifications and choosing an experienced commercial contractor in Toronto, projects can be delivered on time and at budget.