The Hidden Cost of Building; What Most People Only Discover Too Late

Most people approach construction with a simple assumption.

Cost per square metre.

A number, multiplied by an area, with a contingency on top.

On paper, it feels controlled.

In reality, it rarely is.

Because the true cost of building isn’t defined by materials or labour alone —

it’s defined by decisions.

More specifically, by when those decisions are made.

The Most Expensive Words in Construction; “We’ll Decide Later”

One of the most costly patterns in construction isn’t a technical failure.

It’s hesitation.

Or more precisely - starting without clarity.

I was involved in a project at Deutsche Bank Building Canary Wharf, during my time as a Project Manager at Mace Group, where construction began with very limited information.

The client was keen to move quickly, which is understandable. Time always feels like the priority at the beginning.

But the reality revealed itself later.

As the project progressed, key decisions around layout and design were still being made — not at concept stage, but during construction. Naturally, this led to a continuous stream of changes.

Not minor adjustments.

Fundamental revisions.

By the end, there were 1,207 variations.

How do I know?

Because I instructed every single one of them.

That’s how I lost my hair.

The original contract sum sat at approximately £80 million.

The final account closed at around £123 million.

With each variation came the inevitable negotiation.

The main contractor, Overbury, part of Morgan Sindall Group, were experienced and highly capable - exactly the kind of team you’d want on a project of that scale.

But even with the best contractors, the pattern doesn’t change.

Every variation became a discussion.

Every discussion, a negotiation.

And more often than not, I’d hear the same line:

He’d push back on the numbers, shake his head slightly, and say;

“I can’t do it for less… I’m not a bank.”

Which, in fairness, was quite fitting given who the client was.

There was always a bit of humour in it.

But behind that, a very real truth.

What This Actually Means

The cost of change in construction is not linear.

A decision made on paper is inexpensive.

The same decision made on site is disruptive.

And the same decision made late becomes disproportionately expensive.

The gap between the original contract and the final account was £43 million.

Had those decisions been resolved properly at the outset, within a coordinated design process, the equivalent cost would likely have been closer to £30 million.

Not exact.

But directionally clear.

This is not unique to one place.

It’s simply how construction behaves.

Projects rarely fail because of one major mistake.

They drift.

Through hundreds of small, late decisions.

Each one manageable.

Together, significant.

Luxury Is Decided Long Before Construction Begins

Most people assume luxury is a function of budget.

More money, better materials, bigger house.

In reality, that’s the easiest part.

Luxury is decided much earlier, in the concept stage, in the level of design thinking, and in the discipline of execution.

I once spent a day on site with a senior director from Conran + Partners.

Let’s call him Dan.

What stayed with me wasn’t what he noticed.

It was what he had already decided.

Down to the smallest level.

He had specified the screws.

Not just the type, the size.

5mm.

Everything was drawn, considered, and resolved in advance. Nothing left open to interpretation.

When we got to site, the contractor had installed 7mm screws instead.

It worked.

Most people would never see it.

But that wasn’t the point.

The issue wasn’t the screw.

It was that the level of thinking that had gone into the design hadn’t been carried through into execution.

That level of detail, specifying something as small as a screw isn’t about control - It’s about intent.

And once you’ve seen that level, you start to understand where real quality comes from.

What Defines Quality (And What Doesn’t)

Luxury is not imported stone or high-end brands.

Luxury is:

• how early decisions are made

• how carefully details are resolved

• how consistently those decisions are protected through construction

It’s a mindset, not a line item.

Anyone can take a premium material palette and produce something that feels impressive.

That’s the easy version.

The real test is something else entirely.

Like a good chef.

Anyone can take a lobster and make it taste good, but It takes a different level of skill to take everyday ingredients and turn them into something exceptional.

That’s where design becomes discipline.

And that’s where most projects fall short.

A Different Way to Look at Cost

Building isn’t expensive because of materials.

It’s expensive because of decisions. Or more accurately the lack of them.

The projects that run well are not the ones with the highest budgets.

They are the ones where:

• the thinking is done early

• the details are resolved properly

• and the process is respected from start to finish

Everything else tends to correct itself later. Usually at a great cost and not just in monetary ways.

Closing Thought

Most of what defines a successful project is invisible.

It doesn’t sit in the marble.

It doesn’t sit in the fixtures.

It sits in the discipline behind the decisions long before construction begins.