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Reasons Estimating Fails

  • The owner lacks clarity on what needs to be repaired, constructed, or completed.

  • The estimated costs exceed the owner's expectations.

  • The written specifications are not formatted in a way that the owner finds acceptable.

  • There was reliance on guesswork for comparisons.

  • The owner is overly focused on the final cost and disputes any unspecified extras not included in the contract.

  • The owner approaches the project as if they are seeking a bargain, similar to shopping at Wal-Mart.

  • The contractor did not obtain written approval for the scope of work to be performed.

  • The owner assumes the contractor will meet all expectations, regardless of what was specified.

  • The owner believes that all permitting issues and project conditions are included in the original estimate.

  • The owner expects the contractor to absorb any unforeseen costs, thinking they have already paid a substantial amount.

  • The owner did not review or understand the design drawings.

  • The contractor failed to have the owner sign the contract and plans.

  • The contractor must ensure the owner signs the design plans, which should be referenced in the contract and dated.

  • The contractor assumed that the building plans would be approved by the building department, which influenced the project cost.

  • The design drawings contain numerous errors, and the owner is reluctant to accept responsibility for additional costs.

  • The contractor initiated the project on a design/build basis.

  • Existing conditions changed after construction commenced.

  • The owner did not allocate a budget for unforeseen issues and requirements.

  • The contractor did not communicate that the project is a "PROCESS" that requires completion.

  • There are no contractual specifics documented for undefined issues, such as existing conditions like termite damage, structural failures, weather conditions, or operational challenges.

  • Payment and project stage approvals are based on a draw schedule for work completed.

  • The contractor does not manage and control the project according to the contractual costs involved.

  • Job reports are not regularly documented.

  • Communication between the contractor and the owner has not been consistently maintained.

  • The contractor works for the owner and oversees the project.

  • Trade contractors operate under the general contractor's supervision.

  • Instruction sheets are signed off for approval.

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