Renovation overruns: why budgets blow up

Plain-language guidance to help you budget and avoid surprises.

The biggest causes

• Scope creep (small additions that add up)
• Hidden conditions (water damage, wiring, structural issues)
• Permits and inspection requirements not planned for
• Material lead times and substitutions
• Change orders without a clear approval process

How to reduce risk

Get itemized quotes, clarify what’s included, and decide how change orders are priced and approved before work starts.

• Write the scope (included/excluded) in plain language
• Budget contingency (commonly 10–20%)
• Keep a written change-order log

Timing costs money too

Delays can cause extra costs: extended rentals, storage, interest costs, and scheduling conflicts.