We’ve been building in Missouri since 1949, and I’ll be honest with you: most construction projects go over budget.
Not just a little over. A 2025 industry analysis found that 85% of projects exceed their budgets by an average of 28%. McKinsey’s research on large projects shows they can run up to 80% over budget and finish 20% behind schedule.
And according to a 2024 study of over 16,000 construction projects, only about 8 out of every 100 finish on time AND on budget.
After 75 years and eight generations of building everything from schools to churches to the State Capitol, we’ve seen why this happens. And more importantly, we’ve learned how to avoid it.
Here’s what goes wrong, and what we do differently.
The Problem with Just “Give Me Your Best Price”
I can’t tell you how many times we’ve seen this: a school board gets three bids. One is significantly lower than the others. They take the low bid. Six months later, they’re dealing with change orders, cost overruns, and schedule delays.
What happened? Either the contractor missed things in the estimate, or they lowballed the price to win the job, knowing they’d make it up later with “extras.”
We track our actual costs on every project. When we give you a number, it’s based on what things really cost in Central Missouri, not what we hope they might cost. We know local soil conditions. We know what permits take in Jefferson City versus Columbia. We know which suppliers are reliable and which ones will leave you waiting.
Does that mean we’re always the lowest bid? No. But we’re usually pretty close to our estimate when the project’s done.
When Materials Don’t Show Up
Here’s a story that shows how fast things can go sideways.
We were building a new gymnasium for Jefferson Middle School in Columbia. An $11 million project. The plans called for steel bar joists for the roof structure.
Then we got word: steel delivery was going to be delayed by months. The school needed this building ready for students. We didn’t have months to wait.
We have our own concrete crews and registered professional engineers on staff. So, we ran the numbers and went back to the architect and school district with a proposal: switch to precast concrete double tees instead of steel.
We redesigned that part of the building. We got it done three months AHEAD of schedule. And the school saved more than $300,000.
(We wrote the whole story here: How Value Engineering Saved Columbia Public Schools $365,000)
That’s not something every contractor can do. If you’re just coordinating subcontractors, you wait for the steel. If you actually have your own crews who can pour concrete, you have options.
We’re not a “suitcase” general contractor who comes to town with one superintendent and subcontracts everything. When you self-perform critical work like concrete and carpentry, you have more control when things go wrong. And in construction, things always go wrong somewhere.
Who’s Actually Building Your Building?
I’ve seen too many projects where the “contractor” is really just a guy with a phone who’s coordinating subs. Nothing against subcontractors—we use them too. But when that’s ALL you have, you’re at everyone else’s mercy.
Your electrician is three weeks behind on another job? You wait. Your concrete supplier has a scheduling problem? You wait. Somebody makes a mistake? They blame each other, and you pay for it.
We’re an employee-owned company. The people running your job have actual skin in the game. Our carpenters, concrete crew, and project managers—they’re all employee-owners. When something goes wrong, they fix it. They don’t point fingers and send you a change order.
And we’re local. We’ve been in Jefferson City since 1949. We’re not going anywhere. Our reputation here matters more than any single project.
The Thing Nobody Wants to Talk About
You know what causes a lot of budget problems? Getting the contractor involved too late.
By the time we see some projects, the architect has already designed the whole building. The owner has already committed to a budget based on square footage estimates from the internet. And then they’re surprised when the real bids come in 30% higher than they expected.
If we’re involved early—during planning, before the final design is locked in—we can tell you what things actually cost. We can suggest alternatives that save money without compromising quality. We can help you prioritize what’s important and where you can cut if you need to.
The partnering approach we use brings everyone together at the start: owner, architect, engineers, contractor. We work through potential problems before they’re expensive problems. We make sure everyone’s working toward the same goals.
It’s not complicated. It just requires somebody who’s willing to share information honestly before the contracts are signed.
What You Should Actually Ask a Contractor
Forget the generic “are you licensed and insured” questions. Here’s what actually matters:
How long have you been working in this area? Not “how long in business” but specifically around here. A contractor who doesn’t know your local inspectors, suppliers, subcontractors and building codes is going to learn on your project.
Can I see similar local projects you’ve completed on time and on budget? Not just pictures. Can they put you in touch with the owner? What went right? What went wrong?
What work do you do with your own crews? If the answer is “none” or “we subcontract everything,” think hard about that.
Will I have access to the project schedule and budget in real time? We use Procore, so our clients can log in and see exactly where things stand. No surprises.
The Truth About Staying on Budget
You can’t eliminate every risk. We’ve been doing this for 77 years and we still run into surprises. Last winter’s ice storm. Supply chain problems. Labor shortages. Things happen.
But budget overruns aren’t inevitable. They happen when contractors don’t plan ahead, don’t communicate honestly, don’t have backup plans, and don’t have the in-house capability to solve problems on the fly.
We’re not saying we’re perfect. We’re saying we’ve been doing this long enough to know where the problems come from and how to head them off.
If you’re planning a building project and want to talk through what’s realistic, give us a call. Even if we’re not the right fit for your project, we can probably point you in the right direction.
by – Vaughn Prost, PE, President, Prost Builders