Asking your contractor the right questions about the budget can help you make informed decisions, avoid surprises, and maintain control over your project's financial aspects. 

Here is a list of key questions to ask your contractor to better understand where your money is being allocated and have financial peace of mind.

Questions

1. Are there any potential additional costs or unforeseen expenses that may arise during the project? Has anything been excluded from the budget?
You want to be prepared for any unexpected expenses that could impact the budget. Inquiring about items not included in the budget or potential factors that may lead to additional costs can help you plan accordingly.

2. What payment schedule do you propose? 
If you don’t know, ask. Inquire about the payment type and schedule, including the initial deposit and subsequent progress payments, to ensure it aligns with your financial capabilities (your bank draws) and the project's timeline.

3. How will change orders or modifications to the project be processed and affect the budget? 
You may want clarification on how any changes or modifications to the original plan will impact the budget, including whether additional costs will be incurred and how those costs will be communicated and approved.

Ex. Your contractor's payment structure is Cost + and you purchase a more expensive wallpaper. Does that mean you will be charged more for his fees?
 Pst, you shouldn’t.

4. Will I receive regular updates on the budget throughout the project? 
The level of budget updates depends on the payment structure. Either type of payment structure, you should receive updates about any changes, cost overruns, or potential savings. This helps you maintain control over your expenses and make necessary adjustments if needed. 

5. What happens if the project goes over budget? 
You may want to ask about your contractor's policies and procedures in the event that the project exceeds the initial budget. The reason: Understanding how cost overruns are handled can help homeowners assess their options and mitigate any financial risks.

Bonus: 
Can you share examples or can I see references of similar projects and their associated costs? 
You can request references or examples of past projects that are similar in scope or scale to understand how the budget was managed and if there were any deviations from the initial estimates.