Dudley Peverill

Avoiding Cost Creep in Barn Conversion Projects: Lessons from the Field

Barn conversions are some of the most rewarding forms of rural development, but also some of the most complex. In 2025, with material and labour costs continuing to rise, and construction costs expected to continue to increase by 14% from Q2 2025 to Q2 2030 according to the BCIS, avoiding cost creep has never been more critical for landowners and developers.

At Dudley Peverill Associates, our Project Management team has a history of working on a wide range of rural and conservation projects, from listed farm buildings to high-value conversions. One lesson comes through time and again: even the simplest refurbishment can quickly overrun its budget if it is not managed with discipline from the very start.

Here are three lessons from our Senior Project Manager, Sean Enright, straight from the field.

Recognise Scope Drift Early

Scope drift is one of the biggest threats to project margins. It often begins with small, seemingly harmless decisions:

  • Upgrading windows to bespoke joinery
  • Adding underfloor heating to “just one more” area
  • Moving an internal wall to create a larger room
  • Long lead times on client-driven or specialist finishes
  • Unforeseen structural issues

Individually, these may appear minor (structural issues aside). Taken together, they can add tens of thousands of pounds to a budget. Design revisions, extra professional fees, added labour and delays to the programme all compound the problem.

Key insight:

All variations need to be captured, tracked and carefully scrutinised by the wider design team. The time and cost impact should be made clear to the client prior to approval. A key part of project management is challenging whether each change aligns with the original vision and objectives, and understanding how it interacts with planning conditions, building regulations and the budget.

While variations are often unavoidable, tracking every one is essential for a successful outcome.

Invest in Pre-Tender Design Discipline

Rural buildings are living pieces of history, and every one hides surprises. Decayed timbers, crumbling substructures and undocumented utilities are common. Projects that lack pre-design investigation and contingency planning are far more likely to suffer cost and time overruns.

Investing in detailed design development and surveys at the outset pays for itself many times over. This should include:

  • Detailed measured surveys
  • Early structural and mechanical and electrical (M&E) input
  • A clear design freeze before tender (RIBA Stage 4 Technical Design)

Key insight:

When contractors price against a well-coordinated, frozen design, the risk of costly variations and disputes later on is reduced significantly. Early investment in surveys and technical reports uncovers hidden risks and protects against unnecessary cost and time exposure.

Proactive Project Management = Protected Margins

Once construction begins, maintaining control of programme and cost is critical. Effective management includes:

  • Weekly progress meetings and budget versus actual cost tracking
  • Contractor meetings focused on risk items
  • Early warning reporting for potential delays or overspends
  • Regular programme reviews and tracking

In our experience, projects that adopt disciplined cost reporting and fast, informed decision-making are far more likely to finish on budget than those that are left to drift until the final account.

Final Thoughts

Barn and rural building conversions are, in many ways, conservation and restoration projects. They will always carry a degree of unpredictability compared with new build scenarios. While this can be a challenge, it is also part of what makes them so rewarding.

By investing in strong design discipline, early risk identification, proactive cost control and quick, well informed decision making, projects can be delivered that respect both the heritage of the building and the client’s budget and objectives.

In the current market, where every percentage point matters in protecting return on investment, margin protection is not only a good practice but also a competitive advantage.

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