Hidden construction costs are the single biggest source of homeowner distress in India. Projects regularly end up 30–60% over the original quote, not because of genuine price changes, but because of deliberate scope omissions and poor contracts.
Most Common Hidden Costs
- ▸SBC lab testing
- ▸Anti-termite treatment
- ▸Sump and overhead tank construction
- ▸Compound wall and gate
- ▸Staircase handrail and finish
- ▸External drainage and rainwater channels
- ▸Electrical main panel, earthing
- ▸Temporary shed and site setup costs
- ▸Water supply for construction
- ▸Transportation and crane charges
- ▸Change orders for "design modifications"
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The Simple Rule to Avoid Hidden Costs
Insist on an itemized BOQ that covers all categories above. If any item is not in the BOQ — it is not in the price. Before signing, use a checklist to verify the BOQ is complete.
Red Clause Alert: Watch for These Contract Phrases
- ▸"Any additional work as directed by client" — unlimited scope expansion
- ▸"Materials as per site availability" — contractor decides quality
- ▸"Payment on demand" — not milestone-tied
- ▸"Subject to material price revision" — rate escalation clause
- ▸"GST and taxes extra" — check how this is calculated
FAQs
Should I pay a percentage advance to a contractor?
Avoid large advances. A mobilization advance of 5–10% of contract value is standard. Tie all subsequent payments to specific, verifiable construction milestones — not to time elapsed or contractor demand.
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