Key takeaways
- 15% contingency floor.
- Lock scope with detailed SOW.
- Limit change orders to <10%.
- Inspect during demo for surprises.
- Stop work and re-quote if scope changes.
Core concepts
Scope creep
Owner-driven additions destroy budget.
Change orders
Lock initial scope; reprice if needed.
Surprises
Wiring, plumbing, structural emerge in demo.
Step-by-step framework
- 1Detailed SOW.
- 215% contingency.
- 3Demo inspection.
- 4Weekly walkthroughs.
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Common mistakes to avoid
- Vague SOW.
- No contingency.
- Skipping walkthroughs.
Frequently asked questions
Typical overrun?
10–25%.
Worst surprise?
Galvanized plumbing + knob-tube wiring.
Walk if overrun?
If >25% of contract, renegotiate.
Owner additions?
Limit and document.
Action checklist
- ☐Detailed SOW.
- ☐15% contingency.
- ☐Demo inspection.
- ☐Weekly walkthrough.
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