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kitchen renovation

4 years ago

We are about to do a major kitchen renovation. We (unfortunately) paid a percentage of the initial estimate after the plans were drawn up and then the contract was drafted with a price well over the estimate. We tried to cut costs by removing items to stay within the initial estimate, yet the subsequent contract price increased again.

We realize the cost of labor and materials is rising, but is it likely that Kraftmaid cabinetry has had three price increases in 4 months? We asked for verification (not their cost specs) but were told pricing information could not be shared.

The kitchen designer said that our quartz countertop allowance was very generous. To avoid paying an overage plus a percentage, I asked to select the countertop prior to the drafting of the contract which they allowed. The actual countertop cost is 2.5 times higher than the allowance. Aside from the color, the details (square footage, thickness, sink cut-outs, finish, etc) were all known prior to setting the allowance. They only use one quartz manufacturer. One of the two colors I chose was a higher price tier but that alone cannot account for that kind of price difference.

The initial project estimate was provided prior to the subcontractors coming for their site visit. I did not anticipate much of a price adjustment, I just assumed they were coming to see the layout and that the contractor had already accounted for the costs of their services. Instead, we more costs were added on.

They told us the price on electrical components went up significantly (in just a few weeks), though a sales rep with a large electrical distributor told me prices on electrical supplies have steadily declined over the past several weeks.

There was a hefty charge added to the HVAC estimate, due to the need for an additional make-up air system. It is an installation of a range hood on an external wall and we selected the hood prior to the estimate. Would a contractor not know that detail or at least provide a closer estimate based on previous quotes for the same kind of work?

This is our first renovation, so the process is new to us. We met with multiple contractors, called references, read reviews, and chose this company based on nothing but positive feedback. Maybe our experience is the norm but it feels like we were baited with an estimate well below reality. We realize it is a time of volatile pricing and supply constraints and the builder needs to profit. I am just reaching out for other’s opinions and experiences with similar situations.

Thank you so much for your input.

Comments (5)

  • PRO
    4 years ago

    Put specific numbers to the original estimate vs the current price. A lot of contractors use the low initial estimate with allowances to make the project seem more affordable. If the original estimate was 30K, and the end is 100K, that is a case of the original being suspiciously too low to be true. If the original was 85K, and the now price is 100K, that rise can be explainable by some materials and labor rising.

    T J thanked User
  • 4 years ago

    Thank you. It's a 6 figure renovation that has increased by 25%.

  • 4 years ago

    That's not wildly out of range. But when you put down a deposit against the estimate, did your contractor have any terms that allowed you to get out of the agreement and get your deposit back of the total cost increased by more than a certain percentage post-estimate pre-contract? Mine did, and I believe set it at 10%. Of course this would apply to changes to costs within the existing scope of the project, not additions to the scope. He might be able to argue that the make-up air thing was a change in scope.

    T J thanked denkyem
  • 4 years ago

    Unfortunately, there was no refund option and being a novice, I didn't imagine it would exceed the estimate by so much. The estimate already exceeded the budget we discussed with them but agreed to proceed, as that was to be expected. Not to mention, there are still allowance items to choose and if the counter exceeded the allowance by 150%, I am concerned that other overages are yet to come. Thank you so much for your input. Much appreciated!

  • 4 years ago

    i would be upset about the make up air situation. between gc and kd someone should have known to include that, although not terribly surprised either. my experience was that everyone priced low though. the only person who quoted correct price was just an off the cuff estimate. our gc’s was 20-25% low and another was 40% under with completely absurd allowances. we ended up ordering cabs and countertop ourselves and had priced everything out so were mostly looking at contracts for the labor costs which were accurate.

    T J thanked lharpie