The 5 Hidden Costs That Blow Up Your CapEx Projects

You’ve justified the scope. You’ve done your budget. And still—somehow—the numbers don’t hold. Sound familiar?

The issue isn’t always poor planning. It’s often what’s missing from the plan.

Here are five distinct hidden costs that can quietly derail your capital project budget—especially in the early stages:

Table of Contents

1. Temporary Works and Site Setup

2. Power Supply Upgrades

3. Commissioning Delays

4. Freight and Handling

5. Scope Gaps Between Contractors

1. Temporary Works and Site Setup

Most budgets focus on the final installation, not the work required to prepare the site—temporary fencing, platforms, lighting, or isolations during construction.

🔍 Action: Scope and budget all temporary works during the planning phase, not when boots are already on the ground.

2. Power Supply Upgrades

You’ve costed the machine—but what about the extra load on the switchboard? Projects often require VSDs, new circuit breakers, or even transformer upgrades, especially with 75kW+ equipment.

🔍 Action: Confirm electrical capacity with your engineering team before locking in costs.

3. Commissioning Delays

It’s not just the cost of commissioning—it’s the cost of delay if the site isn’t ready, documentation isn’t in place, or the contractor is tied up elsewhere.

🔍 Action: Include float time and a provisional sum for delays during commissioning.

4. Freight and Handling

Freight is often quoted separately—and excludes customs clearance, on-site unloading, or specialist gear like cranes or forklifts.

🔍 Action: Identify all handling needs from the port to the factory floor and confirm who’s responsible.

5. Scope Gaps Between Contractors

One contractor thinks the other is doing it—and no one actually does. This often happens with minor but essential tasks like penetrations, piping transitions, or mounting brackets.

🔍 Action: Map out every task, then cross-check for overlaps and handoffs.

Final Thought

Cost blowouts don’t usually come from one big mistake. They creep in through assumptions and “we’ll sort that later” conversations.

Catch them early, and your business case stands up stronger.

P.S. If you're working on a business case or reviewing a quote, this checklist can help you catch hidden costs early—and avoid budget surprises.

🎥 For more tips like this, subscribe to my YouTube channel for short videos on project management and productivity.

Thanks for reading. See you next Saturday.