Additional Costs

When additional costs are discussed during a building job it can cause issues and disputes. The homeowner wasn’t expecting and the builder feels the additional cost is justified. We can help you find a middle ground and agreement without spending lots of money on courts and Solicitors costs.


Additional Cost

Who We Help


Are you facing additional costs on a building job for additional work that doesn’t feel justified?

Sometimes during construction additional costs not budgeted for arise. This then causes conflict since the owner will have to pay more money than initially agreed. Mediation takes all of this into account and also tries to look at the reasons why the additional costs occurred so that both parties can come to a solid agreement.

Let’s first take a look at the main reasons why a job may incur additional costs. The first common issue is that there is an incease in marieral costs that is outside of the builders control. 

Another issue is poor planning during the bid stage. Perhaps the people you chose to work with greatly underestimated the amount of materials needed and how much manpower it would take. In some instances, the project manager may have intentionally reduced the project completion process in order to secure your bid, and then hit you with additional charges at a later date.

After you’ve found out the why’s it’s time to look at your rights as a homeowner. This is where your contract comes in handy. You should have signed a contract prior to any work commencing which detailed the project length and cost. In this document, you may also find information as to what happens should theincur additional costs. Typically this will be an additional cost for materials or labour. Read through the contract, or have a lawyer assist you with this to make sure that you don’t miss anything.


Are there mounting costs for a building job and
this cost is due to customer changing the spec or their mind?

This saying certainly runs true when it comes to attempting to fix and figure out the reasons behind additional costs on projects.

The best place to start is by communicating with the project manager and builders who are working on the project. Calmly and politely ask them about the issues that they have been facing.

What has exactly is increasing costs?

How can they help toget things back on track?

What do they need?

You’ll often find them to be both helpful and honest in their answers.

Building work Mediation plays a huge role in successfully helping with out of control costs. It will typically involve both parties sitting down with a knowledgeable mediator. If you’re having an issue communicating with your project manager or builders, then this is the best way to go. Mediators have the tools and skills to be able to quickly resolve issues in the most efficient manner. Although a mediation service will come with an extra fee, it will be sure to save you plenty of time and money in the long run.

It’s worth noting what you can do to prevent the time-consuming issue of jobs overrunning on costs in the future. The first is to really work with a company that you know and trust.

Perhaps you can get reviews from friends and family and from people who have done a good job for them in the past.

You should also ensure all of the correct documentation is in order, and that any contracts have a clause which states what will happen in the event that a job does overrun on price. Finally, all payment methods should be secure and in place so that the project can quickly get off the ground and there are no delays.

Follow the above tips and you will be well on your way to resolving additional costs issues and preventing new ones. Good luck.

Contact us today to find out more!

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