Many projects have hidden costs that are not apparent to the contractor, owner, architect or engineer at the design and bidding phase of the project. This is good news for the building owner because these costs are rarely included in the contract amount. However, the bad news is that just because the hidden costs were not included in the contract does not mean the building owners are not impacted.

Fifteen years ago we bid on a 4,000 sq. ft. complicated renovation. We were familiar with renovations, and this project aligned well with our experience on other successful projects in our past. The demolition and beginning construction phases went well, but it did not take long for the “hidden cost” to appear.

What we realized too late: The design required three times more mobilizations for the concrete, masonry, and steel erecting crews than does a typical design.  These extra mobilizations added costs and delays, and decreased project quality.
What caused the situation: The design was a “post and beam” structure, with the exception that the front wall bore on a masonry wall.

What we could have been done differently: A “post and beam” design, without exceptions, would have been a better choice than the post and beam with exceptions (the exception being part bearing and load bearing walls). This could have been achieved with one extra column and four extra beams.

What the building owner could have saved: A shortened construction time and a building that fit together a little better.

What do we do differently now: We still look at the cost of each component of the construction project, but we also look at how the components fit together. If they do not fit together seamlessly, we add money to the estimate.