building cost increase

[billysboy]

I am working on a sizeable project £150k and are about 75% complete but have a budget shortfall of £30k

AIBU in asking for the homeowner to pay this if I dont I will have to borrow this in order to complete the works but be left with that debt at the end
I have not ripped these clients off and they are very pleased with the work and quality and the design

If I was your client, I would be very, very upset. When you were having discussions with them, did you warn them that you may or may not be able to come in on budget? Did you quote or estimate? If you quoted then you will have to absorb the cost.

Why have costs escalated? How do you know that they can afford the shortfall?

You should have had discussions regarding this way before now!

It depends upon your contract. If the onus is on your clients to pay then I guess they will have to but if it’s on you then I would not pay and expect you to cover the shortfall.

Depends how the shortfall came about. If you mispriced it then you will have to swallow it. If the clients spec changed then it's down to them.

Exactly what chickencellar says. Though if it was the clients the increased cost should have been discussed at the time of changing the spec, really.

It's relatively common for this to happen. The homeowner should pay (assuming the shortfall is due to unavoidable, unexpected costs rather than an error in your quote). Good communication is essential here. You need to give the client the heads up as soon as possible and give them a detailed breakdown of exactly how and why the shortfall has arisen.

I had this. I paid.

Talk to the client. Get your breakdown clear and all your figures in place before you start.

My builder told me when things were not as he expected them to be and the job was going to be more complicated. He couldn't have known what the underground pipes were like or that the building inspector would ask him to move a 6ft soakaway further from a wall.

If I chose to change a plan or pick a higher spec item the cost went up. It was alaways clear though.
Don't go into debt. Even if you get half of it that is something but if the work has been done the client should pay for it.

The conversation - with figures to back it up - is crucial.

Remember it is in the clients' interests to get the job finished properly and with goodwill on both sides

Why have the costs come in so much higher than anticipated.That is the crux.£30k on £150k sounds suspiciously like the vat?

Be honest. They didn’t leave you tea making facilities did they