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What to do when a job runs over budget

Jobs run over for many reasons. What matters is catching it early and handling it the same way every time.

  1. Compare hours and parts to the quote daily. Do not wait for the final invoice to see the gap.
  2. Find the cause. Hidden damage, a change the customer asked for, or an estimate that was too thin.
  3. Use a change order for customer changes. Get the new scope and price in writing before doing the work.
  4. Talk to the customer early. Explain what you found and the options, with prices.
  5. Absorb honest misses and note them. If the quote was short, eat it and fix your next estimate.
  6. Update your pricing notes. Feed what you learned back into the next quote.

Common questions

Should I charge for every overrun?

Charge for scope changes and hidden conditions you flagged. Your own estimating misses are usually yours to absorb.

How do I avoid it next time?

Compare finished jobs to their quotes and adjust your standard times and parts allowances.

See also the contractor guides and free tools.

General information, not legal or financial advice. Verify with your attorney or accountant.

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What to do when a job runs over budget