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Kingsley Advisory Group

Independent construction and development advisory

Excerpted. Full Diagnostic delivered to clients. — Pieter

Prepared for

Sample Project

Home addition / 2nd storey · Abbotsford, BC · Fraser Valley

pieter@kingsleyadvisorygroup.com

A full second storey above a 1970s Abbotsford rancher for $425,000 is achievable — the question is whether the $80,000 gap between your two quotes reflects scope, risk, or something missing on the lower side.

Health

72/100 — Workable. Designed scope, real quotes in hand, contingency set. Variance between quotes is the open question.

Biggest Risk

The $80,000 spread between contractors usually splits into roughly two-thirds scope difference, one-third risk allocation — until you know which, you're comparing two different jobs.

Watch

Mechanical is named as the difference, but mechanical alone rarely accounts for $80K on residential — there's likely scope or allowance variance hiding in the lower quote.


1.Health Score

This is a defined project with real engineering behind it. You have an engineer's read on the foundation (some perimeter reinforcement required, but the structure holds), drawings the contractors are pricing against, two real quotes in hand, and a contingency line you actually entered rather than left blank. That puts you well ahead of where most homeowners are when they ask for a senior read. The number is workable for the scope, and the structural answer that gates so many additions like this has already been answered. What you're now in is a different question — not whether the project can be built, but who builds it and at what real cost.

72 / 100
Workable
Partial data

72/100 means Workable — the project is real, the budget is in range, the engineering is in hand, and the open question is contractor-pricing variance rather than feasibility.

This assessment is based on partial data — designed scope and engineered foundation are firm, but I don't have line-item breakdowns from either quote.

The single condition driving this score is whether the $80,000 spread between contractors reflects scope, allowance, or risk allocation — and until that's resolved, the $425,000 budget could land at $425K or at $470K depending on which contractor you sign.


2.Primary Driver Analysis

Primary Driver

Scope. The single thing that most determines whether this project succeeds is whether the two quotes are pricing the same job — and right now, an $80,000 spread says they almost certainly aren't.

The foundation answer is in. The drawings exist. The contractors have priced them. That puts you past the make-or-break feasibility moment that breaks most second-storey additions early. What's open now is a different kind of scope question — not "what are we building" but "are we pricing the same thing."

— Abridged —Full analysis delivered with your Diagnostic.

3.Risk, Ranked by Impact

Three risks determine whether the dollars in this budget land where they need to. They are ranked by what each one would cost if it goes wrong.

1 — Most Critical

Signing the wrong quote without knowing what's in it

Two contractors $80,000 apart on the same drawings means at least one of them is pricing something different from what you think you're buying. Until both quotes are broken down line-by-line and compared side-by-side, you don't know which one is closer to the real cost. Signing either before that exercise is committing capital against a question you haven't asked.

EXPOSURE: $40,000–$80,000 — the cost of either change orders against the lower quote during construction, or paying for risk allocation in the higher quote that doesn't materialize. The expected value of the wrong call.

CONTINGENCY: Ask both contractors for a line-item breakdown to the same template before any conversation about price. Demand allowances be named — not "kitchen cabinetry: included" but "kitchen cabinetry allowance: $X." This is the single highest-leverage move on the file right now.

— Abridged —Full analysis delivered with your Diagnostic.

4.Five Actions This Week

Forward Watch

The three signals that tell you a risk is moving before it costs you:

A quote breakdown coming back with allowances bundled into "included" rather than line-item dollar values — that's where the spread is hiding.

The lower contractor declining to provide their mechanical scope in writing — that's the missing scope showing itself.

The energy advisor's report naming Step 4 for the new envelope rather than Step 3 — that's the Step Code line waking up.

  1. Send both contractors the same line-item template this week and ask them to fill it out for their quote. Use the same eight categories: structural reinforcement, framing, envelope (including windows), mechanical, electrical, plumbing, interior finishes (with named allowances), and existing-to-new connection. The contractor who returns it fully wins your trust before they win the contract.
— Abridged —Full analysis delivered with your Diagnostic.

5.Three Never-Do's

  1. Never sign a fixed-price contract on a quote that bundles allowances into "included" — every allowance you can't see in dollars is a change order waiting to happen, and on additions of this scale they add up faster than your contingency can absorb them.
— Abridged —Full analysis delivered with your Diagnostic.

6.Pieter's Read

My read is that you're in a much better seat than most homeowners I see at this stage, and the work in front of you isn't structural — it's procurement. The engineering is in hand, the drawings exist, the budget is sized correctly for what you're building. What you have now is the classic problem: two contractors $80,000 apart, both telling you they're pricing the same job, and no easy way to know which one is right.

— Abridged —Full analysis delivered with your Diagnostic.

7.KAG Field Guide

Second-storey home addition · Entitlement · Fraser Valley

What we see most often at this stage. Patterns that separate projects that work from projects that don't.

  1. The single largest predictor of cost overrun on a residential addition is whether contractor quotes were compared line-by-line before signing. Quotes that diverge by more than 15% on the same drawings almost always reflect scope gaps that surface as change orders during construction — the budget loss is not the spread, it's the spread plus the surprise.
  2. Allowance language matters more than dollar totals at quote stage. "Cabinetry: included" can mean $5,000 or $25,000 depending on the contractor's working assumption. A breakdown with named dollar allowances per category is the only quote you can actually compare.
— Abridged —Full analysis delivered with your Diagnostic.

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