One important step to avoiding cost blowouts is to work with a builder who offers you a fixed-price contract based on a Comprehensive Detailed Costing .
However, you also need to ensure you avoid creating “scope creep” during the building process. That’s why we put together this blog for you – to explain what scope creep is and to help you avoid it, so you can be confident you won’t face any expensive variations during your project.
Defining scope creep
Scope creep occurs when you ask your builder to add or amend any aspect of your project after you’ve signed a building contract.
This may be something small, such as switching out one bathroom vanity for a different but similar one, or it could be something big, such as switching out a laminate benchtop for a marble one, or asking your builder to add a patio in your backyard.
Because you’re asking for something that wasn’t included in your original building contract or proposal, you’re essentially redefining the “scope” of work on your home, thereby causing that scope to “creep”.
The problem with scope creep
There are several problems with scope creep.
To begin with, there’s the question of costs. Scope creep almost always leads to additional costs beyond those you agreed to in your building contract. (The only exception to this would be a situation where you substitute a material for a cheaper one.)
Some builders will action your scope creep items without giving you an upfront cost for them, leaving you with an expensive variation bill to cover later on. Even if your builder does give you an upfront price for the variation you’ve requested, it’s still going to cost you more than you originally planned to pay and can lead to cost blowouts.
Scope creep can also leave you with a metaphorical bad taste in your mouth. After all, it doesn’t feel great to discover something you felt should be included in your building quote (or worse, something you thought was included in the quote) isn’t covered and will cost you extra. Not only can this feel surprising and upsetting, it can strain your relationship with your builder, which is never ideal in the middle of a building project!
Another problem with scope creep is that it can put your builder in a difficult position. On the one hand, they want to deliver your dream home and hand over the keys knowing you are a happy client. From this perspective, they want to action every element of scope creep you bring to the table. On the other hand, however, your builder can’t afford to do extra work for free. So, they have to charge you for it, but can feel hesitant to do so if they’re worried it will strain your professional relationship. No one wants to choose between making a living and maintaining a good relationship.
With all that in mind, here are 3 ways to avoid scope creep:
1. Detailed Proposal with Fixed Price Contract
Like we mentioned in the introduction, the first step to preventing scope creep is to work with a builder who will create a detailed proposal for your project. And when we say detailed, we mean DETAILED!
Your proposal should include a comprehensive Detailed Costing that has every item for your home itemised, from the materials for each room, to the labour from subcontractors such as electricians, machinery hire, and your builder’s labour. You may need to pay for such a detailed quote, but it will be worth it!
The materials in your Detailed Costing should be broken down meticulously, with every item accounted for. For example, for a bathroom, your Detailed Costing should include the tiling and grout for the floor, the various materials for the shower (tapware, glass doors, wall tiles, etc.), the items you need for the vanity and mirror, and the items for the toilet – even the toilet roll holder. Be sure to read your proposal thoroughly and make sure you understand it. If you have any questions, ask BEFORE you sign anything.
2. In Depth Preliminary Project Meetings
The other important thing you can do to prevent scope creep is to have detailed discussions with your builder before you sign a contract. You need to make sure you’re both on the same page about your expectations for each room in your dream home. You may also want to work with the builder’s interior designer to choose selections for every room in your home and ask them to help you visualise what it will look like, so nothing is left out.
By taking these two steps alone, you should be able to avoid any cost blowouts from scope creep, so your project is as stress-free as possible.
3. Communication and Documentation Throughout
Of course, there may be times when scope creep is unavoidable.
Perhaps you just discovered a different, more expensive kind of paint you’d prefer to use in your living room. Or you visited a friend’s home and realised you really want to add a second vanity to your master bathroom – something you never considered before.
If this happens, then it’s important to talk to your builder straight away so you can share your new vision for your home. It’s also important to ask them for a variation contract to sign. That way, you can both agree to the price for the variation beforehand, which means you’ll avoid getting hit by unexpected costs later on.
If your scope creep item is going to break your budget, you could ask your builder to help you cut down elsewhere in the project to offset the costs. For example, if you want to widen the driveway but can’t afford to do so, perhaps you could choose to use less expensive carpet in the bedrooms, so you can apply those savings towards the costs of a wider driveway.
The main message here is to communicate and work together with your builder before any action is taken that will result in a variation to the contract you originally signed. That way, you’ll remain in control and won’t be hit with any unexpected bills later on.
At HARPER, one of our key points of difference is our commitment to helping clients avoid scope creep by basing our fixed-price contracts on comprehensive building proposals that don’t leave anything out.
If you’d like to learn more about how to avoid scope creep on your building project, we’re happy to help.
