There are two sides to every story! Part 2: The Builder
- Dan Hulbert
- Mar 12
- 3 min read
It's not just homeowners who can fall victim to the "Champagne taste, beer money" trap. Builders can also get burned by clients with unrealistic expectations and limited budgets.
Recognising the "Champagne Taste" Client (From a Builder's Perspective)
While it's important to be open to all potential clients, there are some red flags that might indicate a client has champagne taste on a beer budget:
Unrealistic Expectations: They want high-end finishes and complex designs but express surprise or resistance to the associated costs. They might compare your quotes to online prices for individual items, failing to account for labour, installation, and markup.
Vague or Changing Brief: They struggle to articulate their vision clearly or make decisions. Their ideas are constantly evolving, leading to changes in scope that can impact the budget.
Price Sensitivity Combined with High Demands: They haggle aggressively on price while simultaneously requesting top-of-the-line materials and intricate details. This disconnect between cost and quality is a major warning sign.
Lack of Understanding of the Building Process: They underestimate the time, effort, and expertise required for construction. They might expect things to be done quickly and cheaply, without appreciating the complexities involved.
Multiple Contractors and Quotes: They've spoken to numerous builders and have a collection of wildly varying quotes. This can sometimes indicate they are shopping around purely on price and not quality or expertise.
Focus on the "Look" over Functionality: They prioritize aesthetics over practical considerations, potentially leading to design choices that are impractical, costly, or even structurally unsound.
"Can You Just...?" Syndrome: They frequently ask for "small" changes or additions, not realizing the cumulative impact these can have on the budget and timeline.
Navigating the "Champagne Taste" Client (From a Builder's Perspective)
If you recognize these traits in a potential client, proceed with caution. Here are some strategies for managing the situation:
Be Upfront and Transparent: Have a frank and open conversation about budget realities. Clearly explain the costs associated with their desired finishes and designs. Don't be afraid to say no if their expectations are unrealistic.
Detailed Quotes and Contracts: Provide comprehensive quotes that break down the costs of materials, labour, and other expenses. A detailed contract is essential, outlining the scope of work, payment schedule, and change order process.
Value Engineering: Offer alternative solutions that can achieve a similar aesthetic at a lower cost. Suggest less expensive materials or simpler designs that still meet their needs.
Manage Expectations: Clearly communicate the timeline for the project and explain the potential for delays. Keep them informed about progress and any unexpected issues that arise.
Change Order Process: Establish a clear process for handling changes to the original scope of work. Require written approval for any changes and clearly outline the associated costs.
Payment Schedule Tied to Milestones: Structure your payment schedule so that you receive payments at key milestones throughout the project. This helps protect you from non-payment if the client runs out of funds.
Document Everything: Keep detailed records of all communication, agreements, and changes to the project. This documentation can be invaluable if disputes arise.
Don't Be Afraid to Walk Away: If you feel that the client is being unreasonable or that the project is likely to become a financial disaster, don't be afraid to walk away. It's better to lose a potential job than to lose your shirt.
Dealing with "Champagne taste" clients can be challenging, but by being proactive, transparent, and communicative, builders can protect themselves from potential problems and ensure a smoother (and more profitable) project.
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