StreamHome Construction Podcast

Blueprint Blunders: Navigating the Hidden Pitfalls of Home Construction Projects

• Alex Kosley • Episode 4

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What Are The Biggest Mistakes People Make When Planning A Construction Project?

Ever wondered why so many construction projects go over budget and past deadlines? Licensed general contractor Alex Kosley pulls back the curtain on the costliest mistakes homeowners and business owners make when planning their builds.

The reality of construction planning is far more complex than most people realize. Alex explains why Google searches for "how much does an ADU cost" lead to disaster, and how budget misconceptions create a domino effect of problems. When clients discover their expectations don't match reality, they either cut corners by hiring the cheapest contractor or proceed without proper financial planning—both paths leading to expensive disappointments.

Whether you're dreaming of a new ADU, planning an office upgrade, or tackling a major renovation in the Colorado Springs area, this episode delivers concrete advice that could save you thousands of dollars and months of headaches. As Alex emphasizes, "Construction isn't just something that you wing. A well-planned project saves time, money, and stress." 

To learn more about StreamHome Construction visit:
https://www.YourStreamHome.com
StreamHome Construction
719-644-6777

Speaker 1:

Welcome to the Stream Home Construction Podcast, where we take your project from conception to completion. Hosted by Licensed General Contractor Alex Kozley, we cover everything from accessory dwelling units to commercial construction in the greater Colorado Springs area. Whether you're dreaming of a new ADU, planning an office upgrade or tackling a major renovation project, we've got the expertise to guide you through it. Let's get building.

Speaker 2:

Everyone wants their dream home or perfect commercial space. But let's be real. Planning a construction project can be, but let's be real. Playing the construction project can be a minefield of mistakes. Licensed general contractor, alex Cozley shares the biggest missteps homeowners and business owners make and how to avoid turning the simple build into a money pit. Welcome back everyone, tony Hill's co-host, slash producer, back in the studio with Alex Cozley. Alex, how's it going?

Speaker 3:

I'm doing great today. It's good to see you, Tony. How are you doing?

Speaker 2:

Awesome, awesome, great to see you too. So, alex, what are the biggest mistakes people make when planning a construction project?

Speaker 3:

Great question, tony. There are several mistakes that we commonly see. One of the biggest mistakes we see when people are planning a construction project is not fully counting the cost or, even worse, coming in with budget expectations that don't align with reality. A lot of clients have a number in mind before ever talking to a builder, usually based on what they heard from a friend right online or what they think a project should cost. But construction costs aren't static. They change based on labor availability, material fluctuations, site conditions, even local permitting requirements, and all these costs can fluctuate week to week. Even when someone's budget's way off from the actual cost, one of two things happen Either they get frustrated and start looking for ways to force the project into an unrealistic number, usually by hiring the cheapest contractor or cutting corners, or they go ahead with the project without proper financial planning and run out of money halfway through. Both scenarios create major headaches, cost more in the long run and often leave people with unfinished or compromised projects. That's why we always tell clients start with a realistic budget based on actual, updated estimates from professionals, not guesses, not opinions from friends, and definitely not outdated pricing from years ago, which is much of the information that can be found online currently. Another common mistake we often see is not having a clearly defined scope of work. The more vague or open-ended a project is, the more room there is for miscommunication, scope creep and cost overruns. Clients will say things like let's figure it out as we go, but in construction that's a recipe for disaster.

Speaker 3:

Every change mid-project causes ripple effects. Material orders need to be adjusted, subcontractors need to reschedule, permits may need to be modified, and all of that costs time and money. The best projects always have a well-thought-out plan from day one, with as few last-minute changes as possible. We also see a lot of people choosing contractors based on price alone rather than experience and reputation. There's always going to be a low bidder, but there's a reason that they're the cheapest. Maybe they didn't include everything in their bid, maybe they're cutting corners, or maybe they're underbidding just to win the job and plan to make up the difference with change orders, which is something we see happen often. A well-run project isn't about getting the best price. It's about getting the best value, meaning the right balance of cost, quality and reliability. We believe the best way to serve our clients is to provide a realistic idea of total project costs up front, not lower them in with lower than realistic price and then hit them with tens of thousands or more change orders once we get started.

Speaker 3:

Another area we see people get caught off guard is underestimating the impact of permitting and regulations for their project. We've had clients assume they can start building as soon as they have plans, only to find out they need special zoning approvals, impact studies or HOA sign-offs. Permitting isn't just a formality, it's a critical part of the process that can delay a project by months if not accounted for up front. On top of time needed for architecture and engineering, plans must also go through the building department for review, which can easily take a month or several months for the size of projects that we work on. So all that extra time needs to be factored in into the schedule and the plan from the get-go.

Speaker 3:

And finally, poor communication and project management really make or break a job. A construction project has a ton of moving parts clients, architects, engineers, subcontractors, suppliers and if there isn't a clear, consistent communication, things can go sideways quickly. We've seen small misunderstandings turn into massive rework just because one person assumed something and never confirmed it. That's the reason that we make sure our team and clients stay in sync, with regular updates, documented changes and clear expectations from start to finish. So my advice as a general contractor is if you're planning a construction project, our best advice is to get real about your budget, lock down your scope, hire the right team, understand the permitting process, building contingencies and prioritize communication. Construction isn't just something that you wing. A well-planned project saves time, money and stress and, as a builder, that's exactly what we want for our clients.

Speaker 2:

Crucial steps, crucial steps. So what's the number one mistake, besides thinking YouTube tutorials make you a general contractor.

Speaker 3:

That's a great question yeah, I think you know might be one that we touched on is just assuming project budgets. You know, you go you Google search how much does a new ADU cost? You know, and, and you're going to get answers that can vary wildly. You might find answers from you know 50,000 up to you know 500,000, a really wide range isn't super useful, but a lot of times the prices are just outdated. Getting access to all this information it's not like there's a public library where you have all the bids in construction history and you can pull from that data. So the data is a little bit obscure and hard to obtain and then mostly it's proprietary with each contractor. So really the best way is to just talk to a contractor who built these types of projects before to get the best idea, not a Google search, not spinning, rolling the dice or just asking a buddy what they think.

Speaker 2:

Okay, so have you ever had a client who thought their Pinterest board was a blueprint?

Speaker 3:

Yeah, a lot of people come to us. You know it's very common to come. We've got our Pinterest board. We saved all these things. We think we've got kind of the whole thing figured out and in some degrees the selections and the materials and the style are a big part of the project, but really that's almost like the icing on the cake, you know where everything that we have to make sure everything's engineered and designed properly to code, it's engineered, we'll withstand the snow and wind load. There's a lot of other kind of more technical things that we don't really find on Pinterest related to math and engineering. So in one sense it can really help to guide and give your project life. But a Pinterest board isn't the full set of plans. And another thing that we see that's common is related to that is people will find pre-made plans online and say, hey, I found this plan online, this is perfect, I just want to build this. Can you guys just build this? It's not that simple.

Speaker 3:

Every jurisdiction has specific codes. Here in Colorado Springs we're at high elevations, we have low temperatures, we have higher insulation requirements. There's just a lot of things that vary, and almost every time those plans will have to be adjusted and it will cost as much, if not more, to just create a plan from scratch or get with a builder who has some pre-made plans that are specific to this jurisdiction.

Speaker 2:

Okay, alex, be honest. How many people forget to budget for actual walls because they blew it all on fancy light fixtures?

Speaker 3:

because they blew it all on fancy light fixtures. So I think when a homeowner or a prospective client's kind of doing budgeting work on their own, and I think it's very likely they're going to forget many pieces that one, they may not even know about, several of the pieces that need to go into their project, but then they also may be more oriented towards those design features that we talked about earlier that are coming from their Pinterest board, and not thinking about screws and nails and brackets and things like that that you don't see once your structure is finished.

Speaker 2:

I love it, love it, love it. Alex, well, you're the man. We'll catch you on our next episode. Have a fantastic rest of your day.

Speaker 3:

You too. Thanks, tony, see you then.

Speaker 1:

That's a wrap for this episode of the Stream Home Construction Podcast. Ready to bring your vision to life? Snag a free on-site consultation by visiting our website at wwwyourstreamhomecom, or call or text us at 719-644-6777. Until next time, let's keep building your residential and commercial dream in the greater Colorado Springs area.