When homeowners sign a remodeling contract, they often expect the final price to match the proposal exactly. However, more often than not, the final cost ends up being different—sometimes higher, sometimes lower. This can lead to frustration if the reasons behind the changes aren’t clear.
At Cabinet Creations, we believe in transparency, so in this post, we’ll break down the three main factors that can cause the final price of your remodel to change: selections, change orders, and contingencies.
When you first receive a remodeling proposal, it usually includes allowances for things like countertops, tile, flooring, and fixtures. These allowances are estimates based on a reasonable budget for quality materials.
For example, if your proposal includes a $5,000 countertop allowance, but you fall in love with a $7,000 option, your final price will increase by $2,000. This is a common reason why the final cost is different from the original estimate.
Some contractors intentionally use low allowances to make their bids appear cheaper, knowing you’ll likely choose more expensive materials later. At Cabinet Creations, we use realistic allowances to minimize unexpected costs for our clients.
However, the opposite can also happen—if your final selection comes in under budget, your final price decreases.
A change order happens when the scope of work changes after the project begins. This can be due to:
Homeowner requests: Maybe you decide mid-project that you want to remodel the pantry too. That would be an additional cost beyond the original contract.
Unexpected issues: Sometimes, hidden problems appear once walls or floors are opened up—things like hidden plumbing, structural issues, or outdated wiring that need to be addressed.
While change orders are sometimes necessary, some contractors take advantage of them by inflating prices once work has begun. If a change order seems unreasonably expensive, always ask for a breakdown of the costs.
At Cabinet Creations, we price our change orders fairly and discuss them openly with homeowners before proceeding.
A contingency is an amount of money built into the estimate to account for unknowns. For example, if a homeowner wants to remove a soffit, we don’t always know what’s inside. To prepare for possible surprises, we may add a $1,000 contingency to the estimate.
If we open the soffit and find no major issues, that money isn’t spent. But if we find unexpected electrical or plumbing that needs to be rerouted, that contingency helps cover the cost. Sometimes, even with a contingency, the work may end up requiring additional funds if the problem is larger than expected.
Using reasonable contingencies helps reduce the likelihood of unexpected cost spikes and keeps projects on budget as much as possible.
While homeowners often hear stories of remodels going over budget, the reality is that final costs can also go down—especially when realistic allowances are used, and no major change orders occur.
At Cabinet Creations, we prioritize honest pricing, clear communication, and fair allowances so our clients know exactly what to expect.
If you’re planning a remodel and want a team that values transparency and quality, reach out to us! We’d be happy to answer any questions and help you plan your next project.