Let’s be honest when most homeowners think about building or renovating, the excitement is usually followed by one quiet, nagging fear: “What if this goes way over budget?”
Between rising material costs, unpredictable coastal weather in Camden, and the kind of hidden surprises you only find in older homes around Rockland or Augusta, projects can spiral quickly if they’re not managed properly.
But here’s the thing: cost overruns don’t just “happen.” Most of the time, they’re preventable. Let’s break down how professional general contractors prevent cost overruns before they ever start.
Why Do Construction Projects Go Over Budget?
Before we talk solutions, it helps to understand the root causes.
Most overruns happen because of:
- Vague or incomplete bids
- Poor communication
- No structured change order system
- Unrealistic contingency planning
- Inexperience with local building conditions
In other regions, we add a few more variables:
- Weather delays (freeze-thaw cycles are no joke)
- Material shipping delays
- Older framing and foundation surprises
- Local permitting nuances
If your contractor isn’t proactively planning for these, the budget becomes a moving target.
A professional general contractor treats your budget like a blueprint, something to be engineered carefully, not guessed at.
Transparent Bidding Process
A transparent bidding process is the foundation of budget control. And I’ll say this gently: if a bid feels vague, it probably is.
A professional general contractor breaks down:
- Labor costs
- Materials
- Subcontractor scopes
- Allowances
- Timeline expectations
Instead of handing you a one-page number and saying “trust us,” they show you how that number was built.
A Structured Change Order System
Let’s be realistic, you might decide mid-project that you want:
- A different countertop
- Larger windows
- An expanded mudroom
- Upgraded finishes
That’s not a problem. It’s your home. The problem isn’t changes it’s undocumented changes.
A professional general contractor uses a clear change order system that:
- Documents the scope change
- Prices it before work begins
- Gets written approval
- Updates the total project budget
No surprises. No “we’ll figure it out later.”
Especially with custom homes and renovations, flexibility is important. But flexibility without structure leads to financial chaos.
Contingency Budgeting: Planning for the “What If”
Here’s where experience really shows.
If you’re renovating a 100-year-old home, you should assume you’ll find something unexpected. Old wiring. Framing irregularities. Moisture damage hidden behind cedar shingles.
A professional contractor doesn’t cross their fingers and hope for the best. They build a contingency budget.
Typically:
- 5–10% for new construction
- 10–20% for major renovations (depending on scope and home age)
Contingency budgeting isn’t pessimistic it’s responsible. It keeps you from dipping into emergency savings if something unforeseen pops up.
Renovation Without the Budget Blow-Up
Let me give you a real-world scenario we see often.
A homeowner plans a kitchen addition. The initial design looks straightforward. During demolition, the team discovers structural modifications were made decades ago without proper reinforcement.
An inexperienced contractor might:
- Patch it temporarily
- Skip engineering review
- Or “handle it later”
A professional general contractor pauses, evaluates properly, documents the issue, and provides:
- A clear explanation
- An updated cost estimate
- A revised timeline
Because there’s a contingency in place and a documented process, the project stays controlled even if the scope shifts. That’s the difference between panic and professionalism.
After 25+ years serving Camden, Rockland, Augusta, and surrounding MidCoast communities, Kenneth Cox Construction has built systems around these principles, not just projects.
General Contractor FAQs
How do I know if a contractor’s bid is realistic?
If the bid is detailed, itemized, and includes allowances, timeline estimates, and exclusions, that’s a strong sign of professionalism. If it’s vague or dramatically lower than others, ask why.
What percentage of construction projects go over budget?
Overruns are common when planning is incomplete or change orders aren’t controlled. With transparent bidding and contingency budgeting, overruns can often be minimized or avoided entirely.
Should I always include a contingency budget?
Yes especially for renovations. Even well-maintained homes can hide surprises behind walls and under floors.
Can change orders be avoided completely?
Not always. Design preferences evolve. The key isn’t eliminating change orders it’s managing them with a structured system.
Ready to Build With Confidence?
If you’re considering a project and want honest guidance on budgeting, scope, and realistic expectations, reach out to Kenneth Cox Construction.
With over 25 years serving MidCoast Maine homeowners, their approach isn’t about flashy promises it’s about systems, clarity, and protecting your investment from day one.
Let’s build something that stays on budget and stands the test of time.