Avoid These Budget Killers Most Owners Miss
Renovating a multifamily property is an investment— and like any investment, the last thing you want is to be caught off guard by unexpected costs. As a general contractor who specializes in multifamily renovations, we’ve seen how quickly budgets can spiral when surprises pop up during a project.
The good news? With proper planning, communication, and experience, most of these surprises can be avoided—or at least accounted for upfront. Here are some of the most common sources of surprise costs we see in multifamily renovation projects, and how we help our clients stay ahead of them:
1. Unforeseen Conditions Behind the Walls
It’s the classic “we won’t know until we open it up” situation. Once demolition starts, we sometimes uncover things like water damage, mold, outdated wiring, or corroded plumbing.
How we handle it:
We always recommend a thorough inspection during the pre-construction phase. If possible, we’ll do selective demolition in a few units to get a better sense of what’s behind the walls. This allows us to build a more accurate budget—and set realistic expectations from the start.
2. Incomplete or Inaccurate Building Plans
Especially in older properties, we often find that the existing blueprints are not available or are missing critical details, which can lead to costly design revisions mid-project.
How we handle it:
We walk every building, every unit, and every common area before putting together our proposal. Our team documents existing conditions carefully, and we work closely with architects and engineers to ensure the plans reflect reality—not just paper.
3. Change Orders and Scope Creep
It’s not uncommon for owners or stakeholders to request changes once the work is underway. Maybe it’s a finish upgrade, an additional repair, or a shift in design direction. While sometimes necessary, these changes can increase both time and cost.
How we handle it:
We spend extra time during the planning phase to lock down the scope. And when change orders do come up, we make sure the owner understands the cost and timeline impact before moving forward. Clear communication keeps surprises to a minimum.
4. Delays in Material or Labor Availability
Whether it’s a specialty tile or skilled trades, delays can trigger schedule extensions—and costs can pile up as a result.
How we handle it:
We build lead times into our schedule and source materials early. For finishes or fixtures with long lead times, we’ll suggest comparable alternatives to keep the project moving. We also maintain strong relationships with subcontractors we trust to show up and deliver.
5. Permitting and Code Issues
Permitting delays or unexpected code compliance issues can slow down work or require additional upgrades you didn’t plan for.
How we handle it:
We’re familiar with local building divisions and stay on top of changing code requirements. Our operations team handles the paperwork, coordinates inspections, and keeps your project in compliance every step of the way.
Our Key Takeaway: Transparency + Experience = Fewer Surprises
At Gage Commercial Construction, we believe the key to avoiding costly surprises in multifamily renovations is being proactive. That means thorough inspections, detailed scope documents, contingency planning, and a GC who isn’t afraid to have the tough conversations early.
If you’re planning a renovation and want to work with a contractor who treats your budget like it’s their own—let’s talk.