Commercial construction projects have always had two primary goals: to deliver a high-quality asset on time and on budget. Yet, the path from blueprint to completion is often littered with unexpected costs. Budget overruns can threaten a project’s feasibility, strain lender relationships, and erode investor confidence.
The key to controlling costs is about building partnerships from day one. We work alongside clients to flag risks early, forecast costs accurately, and suggest design strategies that balance both budget and schedule. In this post, we want to highlight the most common budget killers we see in the Nashville market and offer an inside look at how we mitigate them.
The Most Common Commercial Construction Budget Killers
1. Scope Creep
Scope creep happens when owner-driven changes or design adjustments are introduced midstream. These changes ripple through costs and schedules. Small design changes such as adding higher-end finishes, expanding amenity space, or tweaking MEP systems can add up quickly. Many developers underestimate how cumulative these costs become once construction is underway. Even seemingly minor changes require re-engineering, re-permitting, and rescheduling, which adds time and expense.
Resource to Maximize Your Project’s Return: Read our post on the most effective ways developers can create more value in their construction projects.
2. Permitting and Approvals
Many developers assume permitting will follow a straightforward process, but in fast-growing areas like Nashville, that’s rarely the case. Backlogs, zoning hurdles, and evolving code requirements can add weeks or months to a project. What seems like a small oversight—such as a missed rezoning detail or utility review—can stall progress significantly. Early coordination with city staff, planning commissions, and utility providers is crucial.
Permitting and Approval Guide: Stay ahead of the curve with our comprehensive guide to Nashville Building Codes and Zoning Permits.
3. Unforeseen Site Conditions
Hidden conditions below the surface are one of the most frustrating budget killers. Poor soil quality, rock removal, underground utilities, or groundwater can all add unexpected costs. In some cases, environmental remediation or stormwater management requirements can result in six- or seven-figure expenses. Developers who don’t plan for off-site needs—such as road widening or utility extensions—are especially vulnerable. These challenges are difficult to avoid entirely but can be managed with early due diligence and site studies.
Local Insight: Avoid costly surprises. Here’s a look at Nashville’s most common site challenges and how to solve them.
4. Material and Labor Volatility
The last few years have shown just how unpredictable material pricing and labor availability can be. Steel, roofing insulation, electrical gear, and HVAC equipment often fluctuate in cost and lead time. Developers who assume today’s pricing will remain steady—or that critical items can be ordered on short notice—risk both delays and budget overruns. Escalation clauses, long-lead procurement, and creative sourcing strategies are essential for managing this volatility.
Resource to Protect Your Budget: Here’s a post on the most recent cost increases and how proactive sourcing can mitigate issues.
5. Poor Coordination During the Early Phases of a Project
Lack of alignment among the architect, engineer, and contractor during the design phase is a recipe for costly rework. For example, the structural engineer might design column placements that clash with the MEP engineer’s plan for major ductwork or plumbing lines. This lack of initial alignment forces the contractor to stop work in the field and pay for expensive redesigns. This kind of friction is entirely preventable through early, collaborative review.
Collaboration Check: Here’s how to get all of your stakeholders rowing in the same direction.
How Crain’s Approach Helps Clients Stay on Budget
We leverage our decades of experience and strong relationships to defend your project budget against these common pitfalls. Here’s how we partner with clients to do that:
Early, Experienced, and Detailed Preconstruction
Crain’s preconstruction team engages early. We model costs, track material lead times, and identify potential risks before final construction documents are drawn. Our proactive approach saves costly changes later.
Local Insights for the Nashville Construction Market
With decades of Nashville and Middle Tennessee experience, Crain has strong, established relationships with permitting officials, inspectors, and utility providers. Local insight is key to flagging local regulatory issues early and resolving any potential roadblock quickly.
Our Collaborative Design-Build Model
By integrating key subcontractors and design partners early, Crain reduces conflicts that are common during the design and budgeting phase of a project. Our collaborative method uncovers value-engineering opportunities and minimizes change orders during construction.
A Proven and Proactive Communication Framework
Crain provides clients with clear risk assessments and contingency plans from the start. This means there are fewer surprises once construction begins. We maintain transparent communication throughout the project to keep all stakeholders informed and aligned.
One Final Word: Engage Your Builder Early
If we could offer one piece of advice to developers looking to keep their project on budget, it’s this: involve your builder early. Contractors who engage during the concept design phase can provide critical insights into costs, materials, and schedule before decisions are locked in. That early alignment often makes the difference between projects that stay on track and those that spiral over budget.
If you’re planning a commercial development in Nashville, our team at Crain would be glad to share more about our approach and experience.
Connect with us today to start the conversation about your next project.
