Common Reasons for Going Over Budget When Building a New House

Having a new home built is a bit like getting married. At first, you’re romantic, starry-eyed, and full of hope and passion. However, as the days go by, you start experiencing problems and difficulties. All of a sudden, you begin to wonder if you’ve made the right choice.

This is why when you’re building a house, you have to go into it as if you’re getting married. You want a clear-eyed view of what’s involved, and what it’s going to be like. You shouldn’t let the excitement and the warm and fuzzy feeling cloud your head and affect your decision-making process. You have to understand what you want, what can be achieved realistically, and what shouldn’t be left hanging to be misinterpreted.

Building your new home with the help of the best custom home builder in your area, and doing it with eyes wide open is the best way to live happily ever after. You need to be prepared for what’s to come, so you can make sure that your dream home will be finished on time, and with as little extra charges as possible, effectively avoiding the common reasons for going over budget.

The scope of works isn’t established adequately

One of the most common problems encountered when building a new house is the establishment of the scope of works. People are usually in a hurry to have their dream home built that they tend to skip examining everything that needs to be done, and then they try to add them to the paperwork later. For example, at the start of the process, they might think that they want to add their driveway themselves. However, as the days go by, they realize they don’t want to be bothered by the additional work, so they add it in later. Later, they realize that they can’t get home-warranty insurance, which can create a huge impact if they decide to sell in the future. By then, access to the back can be an issue, since all the work at the front is completed. This becomes a big issue, which can be expensive to solve.

Don’t rely on hand-shake agreements. If there are any disagreements, they can escalate into arguments about what either party said about the scope of work. According to, the best way to solve this issue is to get everything in writing. Try to understand what your project is about. If you can’t, there’s no harm in employing someone who can sit in meetings for you and explain it to you on a later date. You can even ask a friend to do it. It is very important to know what you’re agreeing to, what the contract includes and doesn’t include to avoid conflicts in the future.

The project takes longer than expected

Most of the time, creating schedules and sticking to them as strictly as possible all boils down to the amount of research that is done beforehand, followed by meticulous planning. If a project takes too long to be finished, it can become very expensive, with interest adding up onto any loans or bridging finance, and increased alternative living expenses.

The best custom home builders will be able to draw up a realistic budget and will be able to anticipate any issues that may delay the project. However, they should still factor in a contingency amount for any instance of cost blow out. 

You might also want to schedule your project around the driest month, September, but you should remember that there are no guarantees that the weather will cooperate with your project. Usually, people build when they’re financially ready, when it suits them, and when the best home builders are available to get the job done.

Changes are made in the middle of the project

If you don’t want to go over your budget, you should never change your house builders halfway through your project. Doing this may cause a lot of project delays which may even stretch for years. Trying to get out of a contract may be stressful too.

To avoid issues like this, you will need to research, go out, and see a number of builds your potential builder has done before so you can look at the finished product. It is also important to have a trustworthy architect who can manage the builder. Also, you should also pay for legal advice before you sign any contract, so you can cancel it if you have to.

When problems arise, your budget will quickly spiral out of control, especially when plans are changed, the architect is replaced, the design is redrawn, or the draftsman suddenly quits.

Unexpected site problems are discovered

You will never know what you will find when you peel back the fabric of an existing building. One of the worst and most expensive surprises you’ll find is asbestos. Asbestos is very dangerous because it can break down into microscopically thin fibers that can remain airborne for a few days after they were disturbed. This can be inhaled by individuals and cause serious respiratory diseases. You’ll have to spend money on having it removed to avoid health issues.

There is also a possibility that there’s rock under the site that is difficult and costly to excavate, as well as problems with drainage, soil, and retaining walls.

Extras added in

Jumping on and going with the cheapest quote you can find can end up being a huge headache on your part. Rogue builders might quote less because he’s cutting corners where he may, and hasn’t included the things experienced builders will usually add to the quote. He may also add extra charges for items he claims weren’t included, which you might not be familiar with. 

You might also want to steer clear of higher-end fittings, appliances, or fittings that are more expensive than what’s in the plan. You might be too excited and choose designer or better quality options rather than the tried and tested regular items you can get off-the-shelf. Expenses like this can add up very quickly, and before you know it, you’ve gone way over budget.

However, it is still highly recommended to seek the help of your builder when looking for options. The best custom home builders may suggest spending more on beautiful, stylish taps and saving on tiles since people notice the earlier more. He may also recommend tiling only three-quarters of the way up to the wall so you can spend less. Try to be as realistic as possible and look around for the best prices first.

Be careful when signing contracts and choosing your house builders. No one likes extra charges or spending way over their expected budget. Try to avoid these situations so you won’t go over budget, and enjoy your dream home.

Written by:
Harlow Sweeny