Most bond projects start with a solid plan and a budget that looks good on paper. Bids come in close to target. Things get rolling.
Then the change orders start.
Sometimes it’s material prices going up. But more often? It’s gaps in the plans, vague specs, and missing scope that vendors were more than happy to “catch” after the contracts were signed.
By the time those issues show up, districts are stuck reacting — forced into cuts, delays, or scrambling for more funds to cover things that should have been in the plan from day one.
Here’s why bad plans — not bad bids — are the real budget killer, and why waiting until the project is underway to fix it almost never works.
1 The Plans Didn’t Include Everything You Thought They Did
We regularly see millions missing from plans that were assumed to be “complete.” Things like:
- Site utilities
- Security systems
- Kitchen equipment
- Casework, millwork, and specialty finishes
- Furniture, technology, and signage
These aren’t upgrades. They’re core to the project — but often left out of the initial scope. Vendors know this, and change orders become the backdoor for filling in the blanks.
2 Vague Specs Invite Padding and Upcharges
When specifications aren’t crystal clear, bids come back full of assumptions. And those assumptions tend to cost you, not the contractor.
Low allowances, “TBD” items, or open-ended specs give vendors all the room they need to come back later with change orders that feel like surprises — but aren’t.
3 Yes, Material Costs Change — But Plans Should Account for That
Material pricing does move. Steel, concrete, lumber, mechanical systems — they’re volatile. But that’s not an excuse for poor planning.
Good preconstruction work builds in realistic escalation factors and contingency plans. Bad plans ignore the risk and leave the district holding the bag when prices rise.
4 “Value Engineering” Mid-Project Is Just Damage Control
By the time change orders are stacking up, your options aren’t pretty:
- Downgrade the project (cut finishes, shrink scope)
- Delay construction
- Dip into contingency or pull funds from other projects
- Go back to voters with your hat in hand
This isn’t smart cost-saving. It’s reacting too late.
What Actually Works: Pressure-Test the Plans Before Bids Go Out
The districts that stay on track don’t cross their fingers and hope the bids catch everything. They pressure-test the plans before bidding begins:
- Independent reviews focused on scope gaps and plan completeness
- Cross-checks between design teams, estimators, and contractors
- Honest escalation factors built into the budget from the start
Final Thought: If the Plans Are Incomplete, the Budget Is a Guess
Bids can hit the number — but if the plans miss the mark, it won’t matter. The overruns are just waiting to show up later in the form of change orders.
The best way to avoid those seven-figure “surprises” is to catch them before they happen.
If you’d like to learn how we help districts do just that, reach out here.