How to Prevent Budget Overruns, Delays, and Disputes on Your Next Construction Project

A framework for property managers, business owners, and commercial real estate professionals

If you're a project owner coordinating a buildout of your new space or a property manager vanilla-boxing a space to get it marketable, the root cause of most project problems is the same: poor preparation.

After 27 years of general contracting in Metro Atlanta, we've seen the same preventable mistakes cost clients tens of thousands (or hundreds!). This article walks through the framework we use to help clients define their projects and why that preparation is the most valuable investment you'll make.

Industry data shows that change orders typically account for 8–14% of total commercial project costs. On projects with poor scope definition, that figure can reach 25%. Even a 10–15% overrun on a $200K buildout means $20,000–$30,000 in unplanned costs. This is money that comes directly from your bottom line.

The good news? Most of this is preventable.

The Solution: A Well-Defined Scope of Work (S.O.W.)

Scopes of work are friends. But what is a SOW?! It's a working document. Its job is to capture what you know, flag what you don't, and give every stakeholder a single source of truth as the project takes shape.

Keep your SOW in a shared Google Doc so every stakeholder like your contractor, property manager, architect, landlord are looking at the same version. When something changes, don't delete the original. Use comments, tracked changes, or a simple highlight to mark what shifted and why.

A scope of work structured this way does three things: it gives contractors the detail they need to estimate accurately, it gives you a clear record of every decision and revision, and it keeps everyone aligned so the project moves forward instead of sideways.

📥 Download our free Scope of Work Template: https://stan.store/reinvestor/p/the-scope-of-work-template

Here's the four-section framework we recommend.

Section 1: Project Essentials — Setting the Foundation

Before any contractor can give you an accurate estimate, they need context. This section captures who's involved, what you're trying to accomplish, where the work will happen, when it needs to be done, and what your budget looks like.

Project Name — Keeps everyone aligned across emails, permits, and invoices. We like: Street - Company - Short Description.

"123 Main St - Acme Coffee - Tenant Build Out"

Client & Contact Info — Your contractor needs a single point of contact who can make decisions. Example: "Jane Smith, ABC Properties, jane@abc.com, (770) 555-1234"

Key Stakeholders — Identifying the landlord, architect, engineer, and any other decision-makers upfront prevents surprises mid-project.

Project Goals — Tell your contractor what you want to achieve, not just what to build. This allows for value engineering that can save you money. Example: "Create a collaborative open-plan office supporting hybrid work, ADA-compliant"

Location & Address — Include suite number, floor, and county. County matters for permitting jurisdiction and inspection scheduling.

Timeline — Realistic timelines account for permitting (2–6 weeks), material lead times, and inspections. Share your ideal completion date early so your contractor can plan backward.

Budget Range — A range (not a single number) lets your contractor present options and value-engineer the project to fit your investment. We need to know what you're wanting to invest so we can build the plan around that.

💡 Always include a 10–15% contingency in your budget range. Don't think about it, just do it.

Section 2: What Needs to Be Done — Defining the Work

This is where most scope documents fall short. Clients often describe work in vague terms ("renovate the office") when what their contractor needs is specific, outcome-focused descriptions. You don't need to know construction methods — that's your contractor's job. But you do need to clearly describe what you want the finished result to look like.

Here's the difference that saves you money:

❌ "Renovate the break room" ✅ "Install new break room with sink, refrigerator, microwave shelf, upper/lower cabinetry, and LVP flooring"

❌ "Update the lighting" ✅ "Replace existing fluorescent fixtures with recessed LED panels throughout the 3,000 sq ft office area"

❌ "Fix up the entrance" ✅ "Modernize lobby with automatic glass entry doors, LED-backlit signage, and new porcelain tile flooring"

❌ "Soundproof the conference rooms" ✅ "Add acoustic insulation to walls and ceiling in two conference rooms (12x14 each), install solid-core doors"

❌ "Open up the floor plan" ✅ "Demolish and remove 14 cubicle partitions to create an open workspace; patch and refinish exposed flooring"

Walk through these categories and ask yourself if any apply to your project: Demolition, Structural Changes, Mechanical/HVAC, Electrical, Plumbing, Finishes, and Specialty Items (signage, security, AV, kitchen equipment).

💡 Not sure how to describe your work items clearly? Try pasting this prompt into ChatGPT or Claude:

"Help me build a list of specific work items for my construction project. For each item I mention, make sure it includes a specific, outcome-focused description with enough detail that a contractor could estimate it without guessing. If I give vague descriptions, rewrite them to be specific and show me the vague vs. clear version.

[List your items]"

Section 3: Where It's Happening — Defining the Physical Space

Scope creep often starts with location ambiguity. "Renovate the second floor" could mean the entire floor or just your suite. If you don't know the square footage of area thats getting renovated, the contractor may decide for you (good for budgets that is not). Defining exact areas, exclusions, and access constraints eliminates misunderstandings that lead to billing disputes.

Target Areas — Exact square footage, floor numbers, suite numbers, and specific zones. Reference attached floor plans if available.

Exclusions — Areas explicitly NOT included. If you share a building, note common areas, corridors, or utility rooms that are off-limits.

Access Notes — Work hours, key/card access, security protocols, elevator reservations for material delivery, and any tenant coordination needed.

Site Conditions — Is the space occupied during construction? Does furniture need protection or relocation? Are there active utilities to work around?

⚠️ If your space will be occupied during construction, say so upfront. Dust barriers, after-hours scheduling, and furniture protection all add cost.

Section 4: Specs, Drawings & Boundaries — Locking It Down

This section is your protection against scope creep. By documenting material selections, referencing drawings, and explicitly listing what's excluded, you create a clear contract baseline.

Material Specifications — If you have specific preferences (paint colors, flooring types, fixture brands), document them. If you don't, say that too. Your contractor can recommend options within your budget.

Drawings & Floor Plans — Even rough sketches are better than nothing. Attach any architectural drawings, mood boards, or reference photos that communicate your vision.

Exclusions — Spell out what is NOT included. Common exclusions: furniture procurement, IT/network cabling, signage, security systems, landscaping. If it's not listed as included, assume it could become a dispute later.

Assumptions — Document what both sides are assuming. Example: "Existing HVAC system is functional and will not be replaced" or "Client responsible for all permit fees."

💡 The appendix is the most underused section of any scope document. Floor plans, mood boards, reference photos, site survey reports. Anything visual that helps your contractor understand your vision will result in a more accurate estimate and fewer surprises.

The Real-World Impact: Two Projects, Two Outcomes

Here's what we typically see play out:

Without a clear scope: 15–25% over budget from change orders. 4–8 weeks of delays from rework and miscommunication. 5–10+ change orders averaging $3,000–$8,000 each. Constant calls, confusion about what's included. Compromised finishes because the budget ran out

With a clear scope: Won't SOLVE any of the problems but lower the chance of any of them happening. This 30-60 minute practice can save loads of $$$$$.

Your Pre-Construction Checklist

Before you request an estimate from any contractor, make sure you can answer these questions. The more complete your answers, the more accurate and competitive your bids will be.

1. Do you have a single point of contact who can make decisions for this project?
2. Have you identified all stakeholders (landlord, architect, engineer, tenant)?
3. Can you describe your project goals in terms of outcomes, not just tasks?
4. Do you have a realistic timeline that accounts for permitting and inspections?
5. Have you set a budget range with 10–15% contingency?
6. Can you describe each work item with specific, measurable outcomes?
7. Have you defined the exact areas included and excluded from the project?
8. Do you know your access constraints (work hours, security, occupied spaces)?
9. Have you gathered any available drawings, floor plans, or reference images?
10. Have you documented what's NOT included to prevent scope creep?

Ready to Start Your Project the Right Way?

We offer complimentary scope reviews and feasibility assessments for commercial projects in Metro Atlanta. Let us help you define your project clearly before construction begins — so your budget, timeline, and finished space all align with your vision.

📥 Download our free Scope of Work Template: https://stan.store/reinvestor/p/the-scope-of-work-template

Contact us, Mark Allan Contracting:

hello@macont.com | 470-516-6816 www.macont.com

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