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Regardless of the effort taken to stay within a construction budget, it is not unusual for owners and the Architect and Engineering team to learn toward the end of a project that actual costs have exceeded the budget, sometimes significantly enough as to register a loss.
There is a common misconception among contractors that when a project comes out losing money, it is because mistakes were made after the project had started, or because of uncontrollable circumstances that negatively affected the project’s profitability. In many cases, however, the loss can actually be attributed to cost estimation errors caused by incomplete contractual drawings. To avoid losing profit, owners and Architects should seek help from a skilled construction cost estimator, who can ensure common estimating pitfalls like those detailed below do not happen.