We track one metric more obsessively than any other: budget deviation.
Our target is 5%. Over the past three years, our average is 3.2%. The industry average is 20%.
Why 5%?
Five percent is the threshold where trust holds. When a project comes in at 105% of budget, the client thinks: “They were honest about the cost.” When it comes in at 120%, the client thinks: “They lied.”
The actual dollar amount matters less than the ratio. A $500K project at 105% ($525K) costs less than a $1M project at 120% ($1.2M). But the $1M client is angrier, because the deviation is $200K — money they were told they wouldn’t need.
How We Do It
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Contingency in the budget, not on top of it. We include a 10% contingency inside the number we quote. Clients never see it as a separate line item. When things go right, we come in under. When they don’t, we don’t ask for more.
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Weekly cost reports during construction. Every Monday, the client gets a one-page summary: budget, spent, committed, remaining. No spreadsheets, no jargon. One page.
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Three quotes for every decision. Whether it’s windows or tile or lighting, we present three options at three price points. The client chooses. We never make the cost decision for them.
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No change orders without a conversation. If something unexpected happens — and it always does — we call before we spend. No after-the-fact invoices.
The Real Cost of Budget Overruns
It’s not just money. It’s time, trust, and the relationship.
We’ve never lost a referral from a client whose project came in under budget. We’ve lost referrals from projects that came in over — even when the final result was excellent.
The building matters. But the experience of building it matters just as much.