How to Adjust the Project Budget for Unexpected Costs

Budget for Unexpected Costs

Wouldn’t it be nice if every project went according to plan? And wouldn’t be amazing if every job stayed completely on budget? While that’s certainly the dream, every contractor knows that it’s not reality. There are so many working parts on building projects. You can only anticipate so much. So how do you adjust the project budget for unexpected costs?

Be Transparent With the Client

If unexpected costs are throwing the budget off course, be sure to go over all the details with the client. The client needs all of the information about what has happened. After all, it’s their money and they’ll want to make informed decisions about the direction the project should go. You also want them to fully understand why the added costs were unforeseen. You don’t want the homeowner feeling that the project funds are being mismanaged. 

Understand the Client’s Main Goals

The original plans for the project may have included a lot of extras. Homeowners get excited about all of the possibilities and often add on to the initial plans. While it’s wonderful to build on an idea, sometimes plans need to be scaled back.

The dream often starts with a much simpler plan. If you dig a bit deeper with the client you’ll likely find that their main objective is less involved than the plans you’ve laid out together. Try to get to the main goals of the project to define what must be done and what can possibly be cut.

Minimize the Project

Once you’ve defined the client’s main home renovation goals, you may find that certain parts of the home are higher priority than others. There are often more heavily used areas of a house and others that see less traffic. Talk through these priorities with the homeowner to find out which parts of the project can wait. Remind them that you are available in the future if they want to put off part of the project for later.

Suggest Alternatives

While your homeowners may have been dead set on certain details to begin with, when faced with a number of unexpected expenses, they may be willing to rethink the situation. Offer up options — lower-priced products, simpler plans, etc. This way they’ll still feel included in the decision-making process, and they’ll give you a clearer picture of what aspects of the project are the most important to them.

Help With the Extra Cost

If you’re working on a project that has a lot of unexpected costs that arise, having contractor financing options available can save the day. When home improvement financing is available through the contractor, it takes a lot of pressure off the client. They don’t have to try to seek out funds themselves and possibly get into a financial situation they didn’t expect. Loans for contractors to offer their customers don’t have to be complicated or potentially hazardous. HFS Financial takes care of financing for contractors, so that you can focus on what you do best. Reach out to learn more about teaming with us!

How to Adjust the Project Budget for Unexpected Costs

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.