Why budgets “drift” (and how to stop it)
Most overruns aren’t disasters—they’re a thousand small decisions made without price tags. Budget drift happens when allowances are vague, selections move late, and changes get approved verbally. The fix is simple: write things down, decide earlier, and price any shift before it hits the site or schedule.
Build a budget that survives real life
A strong budget starts with definitions everyone understands. List what’s included, what’s excluded, and what’s an allowance—in plain English. Put dollar figures beside each allowance, not placeholders. Ask for a one-page summary plus the detailed breakdown, so you can zoom out or drill down without confusion.
- Inclusions: everything the price covers (demo, framing, finishes, cleanup).
- Exclusions: items you’ll supply or decide later (appliances, specialty fixtures, furniture).
- Allowances: flexible line items with a target dollar amount (tile, lighting, hardware).
Tip: Use apples-to-apples specs (e.g., quartz level, tile size, cabinet box material) so alternates are real comparisons.
Selections early, stress down
Selections lock the budget. The later you pick, the more you pay—in money and schedule. Create a selections calendar that puts long-lead items first. Decide finishes in the order they affect others, then confirm availability before you fall in love.
- Appliances and plumbing (sizes drive cabinet and rough-in).
- Windows and exterior doors (lead times can be long).
- Cabinetry and counters (layout and field dimensions).
- Tile and flooring (patterns, transitions, underlayments).
- Lighting and hardware (counts, backorders, compatibility).
Lock it, list it, sign it. Get a selections sheet with model numbers, colors, and quantities. Small detail now saves big headaches later.
Use allowances to protect choices—not hide costs
Allowances are helpful when you’re not ready to pick, but they should be accurate and realistic. If you’re dreaming of a $12/sq ft tile, don’t accept a $5 allowance. Ask your builder for two or three allowance tiers (good/better/best) and choose the one that truly fits your taste.
- Right-size allowances: informed by current quotes, not old numbers.
- Track actuals vs. allowances: a running total prevents surprises.
- Update promptly: when a selection lands, the allowance becomes a fixed price.
Change orders that won’t torpedo the plan
Changes happen. The goal isn’t zero change orders—it’s zero unpriced change orders. A good process keeps money and timeline visible.
- Written scope: what’s changing, where, and why.
- Price first: labor, materials, and schedule impact shown before approval.
- Sign-offs: digital or on paper; no work until both sides agree.
- Running log: each change numbered, summarized, and reflected in the current total.
Rule of thumb: if a change touches structure, services, or selections, price it. Verbal “quick tweaks” become expensive fast.
Track progress like a pro
Ask for a weekly cost-to-complete snapshot and a two-week lookahead. Together, these show what’s spent, what’s left, and what decisions are due. Pair them with site photos and brief notes. You’ll see drift coming while it’s still easy to fix.
- Budget dashboard: original contract, approved changes, remaining contingency.
- Decisions due: selections that affect near-term work.
- Risks & holds: items waiting on backorders or clarifications.
Bottom line: clarity over cleverness
Budgets don’t blow up; they leak. Tighten every valve: clear inclusions, realistic allowances, early selections, and priced change orders. Do that, and your project’s money story stays honest—from day one to done.
