Why Scope Drives Budget (Not Your Builder)

Read Article

What Is Scope?

In construction, scope refers to the specific work that will be performed. It includes everything from the size of the project to the level of finish, the complexity of the systems, the type of materials, and the unique architectural features.

Here are a few examples of how scope decisions show up:

  • A 3,000-square-foot home vs. a 5,000-square-foot home

  • A flat roof vs. a steeply pitched roof with custom trusses

  • Standard Marvin windows vs. fully custom steel

  • Radiant floor heating vs. traditional forced air

  • A basic kitchen layout vs. a fully custom millwork package with built-ins

Each of these choices changes the scope. And each change in scope shifts the budget—sometimes significantly.

The Risk of a Single Number

Clients often come to us early in the process asking, “How much will this cost?”

It’s a fair question. But when drawings are still evolving and specifications haven’t been nailed down, a single number can only be built on assumptions. And assumptions are a risky foundation for a project of this scale.

At Fernhill, we prefer to offer a budget range—a low and a high—and then clearly define what types of decisions will move the project toward one end or the other.

This approach isn’t vague. It’s honest. It helps clients understand their agency in shaping the outcome.

Cost Transparency in a Scope-Driven Model

We operate on a cost-plus model, meaning that clients see real costs for labor and materials, plus a management fee. This puts transparency at the heart of every decision.

But in a transparent model, the number isn’t static—because scope isn’t static.

As drawings evolve, new ideas emerge. As pricing comes back from trades and vendors, we refine. And every step of the way, we’re tracking the effect of scope decisions on the budget—so there are no surprises down the road.

Why This Matters for Architects

For architects, understanding how scope and budget interact isn’t just a budgeting issue—it’s a design opportunity.

When builders are brought in early, we can help clarify where costs live in the design, and what tradeoffs might be required to keep a concept intact while still aligning with the client’s financial comfort zone.

That collaboration often results in a better design—not a cheaper one. A smarter one. One where every dollar is pulling its weight.

Building Aligned Projects from Day One

At Fernhill, we don’t win projects by offering the lowest number.

We earn trust by creating clarity around how budget works, how scope evolves, and how aligned teams make better decisions—earlier.

Because in the end, we’re not here to guess.
We’re here to guide.

Want to talk about aligning your next project early?
We’d love to connect—with clients, architects, and collaborators who value clarity just as much as craft.

Details

Date

Jul 23, 2025

Category

Construction Insights

Reading Time

Author
Alex Molkentin

Owner - Fernhill Construction

Related Articles

At Fernhill, we know that the quality of any project is only as strong as the people behind it. In our latest episode of Stories About Building Cool Stuff with Cool People, Alex sits down with Michael Bettin, Fernhill’s newly appointed Head of Operations, for a conversation that covers everything from serendipitous introductions to shared values around trust, process, and what it truly means to build well.

At Fernhill, we know that the quality of any project is only as strong as the people behind it. In our latest episode of Stories About Building Cool Stuff with Cool People, Alex sits down with Michael Bettin, Fernhill’s newly appointed Head of Operations, for a conversation that covers everything from serendipitous introductions to shared values around trust, process, and what it truly means to build well.

Choosing the right builder for your Boulder, Lyons, or Denver home isn’t just about finding someone who has swung a hammer for decades. It’s about finding a team with Standard Operating Procedures (SOPs) that guarantee consistent quality. After all, custom homes are basically prototypes—no two are exactly alike! Here’s what to look for

Choosing the right builder for your Boulder, Lyons, or Denver home isn’t just about finding someone who has swung a hammer for decades. It’s about finding a team with Standard Operating Procedures (SOPs) that guarantee consistent quality. After all, custom homes are basically prototypes—no two are exactly alike! Here’s what to look for

Preview Image

At the heart of Fernhill Build Studio lies a story of passion, craftsmanship, and an unwavering commitment to excellence. This story belongs to Alexander Molkentin, the founder of Fernhill Build Studio, who has dedicated his life to the art of construction and design. Through his unique blend of experience, skill, and creativity, Alex has transformed Fernhill Build Studio into a beacon of premium residential construction.

Preview Image

At the heart of Fernhill Build Studio lies a story of passion, craftsmanship, and an unwavering commitment to excellence. This story belongs to Alexander Molkentin, the founder of Fernhill Build Studio, who has dedicated his life to the art of construction and design. Through his unique blend of experience, skill, and creativity, Alex has transformed Fernhill Build Studio into a beacon of premium residential construction.

At Fernhill, we know that the quality of any project is only as strong as the people behind it. In our latest episode of Stories About Building Cool Stuff with Cool People, Alex sits down with Michael Bettin, Fernhill’s newly appointed Head of Operations, for a conversation that covers everything from serendipitous introductions to shared values around trust, process, and what it truly means to build well.

Choosing the right builder for your Boulder, Lyons, or Denver home isn’t just about finding someone who has swung a hammer for decades. It’s about finding a team with Standard Operating Procedures (SOPs) that guarantee consistent quality. After all, custom homes are basically prototypes—no two are exactly alike! Here’s what to look for