What should a contractor do if a project goes over budget?

When a project goes over budget, the most appropriate action for a contractor is to communicate with the client about the situation. Open communication fosters trust and transparency in the client-contractor relationship. By informing the client about the budget overruns, the contractor can discuss the reasons behind the increase, whether it's due to unforeseen complications, higher material costs, or changes requested by the client.

Having this conversation allows the contractor and client to collaboratively explore potential solutions, such as adjusting the scope of the project, finding cost-saving alternatives, or possibly negotiating additional funding if warranted. This proactive approach not only demonstrates professionalism but also sets the stage for better understanding and cooperation throughout the remainder of the project. It also protects the contractor's reputation and reduces the risk of misunderstandings or disputes that could arise from a lack of communication.