14 October, 2024

5 Ways School Builds Go Over Budget

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When your community votes for a bond, they’re not signing up for 15–30% cost overruns — but that’s what most districts get.

Here’s the hard truth: most budgets are realistic when they’re set. The problem isn’t the number — it’s what happens next. Poor plans, missing scope, and vendors who see your bond as a blank check will break even the best budget if the right controls aren’t in place early.

Here are the five ways we often see projects go sideways before construction even starts - and how to avoid them.


Missing Scope

Millions can disappear before anyone steps on-site — not from bad luck, but from line items that never made it into the plans. Things like site utilities, kitchen equipment, security systems, furniture. They’re often left out, leaving districts scrambling for funding mid-project.

Strategic Solutions

  • Don’t assume the architect’s scope is the full list — it rarely is.
  • Use a detailed scope checklist or third-party review to catch what’s missing.
  • Confirm plans reflect real-world needs, not just what’s on paper.

Weak Plans, Vague Specs

When plans are unclear or incomplete, contractors fill in the blanks — and they rarely fill them cheap. This opens the door to padded bids, inflated allowances, and a flood of change orders.

Strategic Solutions

  • Get a pre-bid plan review focused on clarity and completeness.
  • Push for detailed specs and scope narratives with zero gray areas.
  • Don’t rush to bid until the documents are truly ready.

Bids Designed to Win, Not to Deliver

The budget may be right — but the bids are wrong. Some contractors bid low on purpose, knowing they’ll recover on change orders once the project is locked in. Without tight bid scrutiny, districts end up paying more than they ever expected.

Strategic Solutions

  • Require transparent cost breakdowns (labor, materials, overhead).
  • Watch for “too good to be true” bids — they usually are.
  • Set accountability measures for change orders upfront.

No Pre-Bid Vendor Vetting

Not every contractor submitting a bid is qualified to handle the job. Poor vetting leads to missed deadlines, disputes, and expensive fixes that were avoidable from day one.

Strategic Solutions

  • Prequalify bidders before they’re invited to the table.
  • Look at actual performance: on-time, on-budget delivery on similar projects.
  • Ask the hard questions early — not once problems show up.

No One Assigned to Watch the Store

Most districts don’t have someone dedicated solely to cost control. The GC’s job is to build — not to catch their own overcharges. Without an independent set of eyes on bids, scopes, and change orders, millions slip through the cracks unnoticed.

Strategic Solutions

  • Assign a dedicated cost oversight role before bidding starts.
  • Don’t rely on your GC to self-police.
  • Bring in outside expertise to flag risks early — it’s a fraction of what overruns cost.

Final Thought: Overruns Aren’t Inevitable

The budget isn’t the problem. It’s the process.

The districts that stay on track don’t just cross their fingers and hope for the best — they put the right checks and balances in place from day one.

If you’d like to learn more about how we help districts avoid these budget traps, reach out here

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Writer

Sam Bernard

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Transparency.
Accountability.
Results.

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