The most important way to stay within your construction budget is to have one! Decide the maximum you are comfortable spending before you even begin the design phase of your project and make sure you communicate your budget to the professionals you work with.
Next you need to monitor where you are with your budget on a regular basis throughout the construction process. Your contractor should provide you with a minimum of monthly progress reports on itemized construction costs that can be reconciled with your budget.
Construction is a dynamic process that rarely goes exactly as planned. Things not going according to plan often translates to higher construction costs and blown budgets. This does not have to be the case.
There are many ways to get construction projects back on track, and on budget, after running into an unwelcome, and costly, surprise.
For example, let's say after completing demolition on your home remodel a previously unknown problem with the plumbing in the master bathroom is discovered. The cost to fix the plumbing issue is $1,000, which was neither expected nor budgeted for. What to do?
Well, you can either accept the additional cost, knowing you are going to be $1,000 over budget. Or you can stay on budget by making smart decisions that will save you money in other areas. For example you could find a slightly less expensive granite to use in your kitchen. Or revisit your appliance choices and discover that a different high end appliance brand is offering a promotional package deal that will save you more than $1,000 if all of the appliances you purchase are their brand.
If you have a budget and you pay attention to it throughout the construction process you can typically make the decisions necessary to complete your project on budget.