How Much is a Bag of Groceries? The Challenges of Early Estimating

This is, of course, a trick question. The cost of a bag of groceries depends entirely on what’s inside. Without knowing the contents, any number is simply a guess that can vary wildly. 

As Portland-based contractors specializing in custom homes and major remodels, we face much the same challenge when providing an early stage bid. The final cost cannot be defined with so many variables. 

At the outset, almost all major cost drivers are unknown. Materials, fixtures, and finishes have yet to be selected. Systems are not defined.  Existing site and structural conditions are not fully understood. Client preferences and priorities are still taking shape. Each of these variables can significantly impact the final cost, making a precise number impossible to establish.

There is also a practical consequence to providing a number too early: it becomes sticky. Once a client hears an initial estimate, that figure can quickly become the perceived expectation for the project cost. When the estimate later evolves to reflect the actual scope and selections, the change can feel like an increase, rather than an adjustment based on accurate information.

The Durham Approach

Rather than presenting a premature estimate, we structure our process so a budget evolves and becomes more refined as details become available.

In the early stages, we provide a realistic range based on our knowledge of comparable projects of similar scope, scale, and complexity. This gives clients a useful framework for financial planning and an informed basis for deciding whether or not to move forward.

As the design develops during pre-construction, we work closely with the architect or designer to align the project’s scope and selections with the client’s desired investment.

By the time construction begins, the budget accurately reflects the specifics of the project and presents no sticker-shock to the clients, who have been a part of our entire duration of our cost-modelling process. 

Our core value of transparency is prevalent in this approach. We believe clients deserve to understand not only what their project will accurately cost, but how and why that cost evolves throughout the process. By keeping the conversation around the client’s investment open and ongoing, we eliminate surprises, build trust, and provide them with the information they need to make confident decisions. Ultimately, our goal is to enter the construction phase as one unified team that communicates and cooperates and has full understanding of the budget and scope, with a clear path to success. 

Have a project in mind? Reach out —we'd be happy to help you