Unfortunately building a house is not an exact science and the most stressful aspects of building a custom home is that the price is not locked in. Labor costs can be negotiated and locked in up front but not all material costs are locked in and can rise.
Our cost will increase between 2% and 4% due to increases in material costs. The 3 month long logger strike in British Columbia is one of the culprits. The western cedar siding for our house is from B.C. The builder is in the process of working out the exact numbers, some materials are coming in lower and others higher than budget. The builder is also negotiating to get a back charge from the concrete subcontractor due to a small uneven surface in the garage, which will help to offset some of the cost increases.