Ep 220: Why Your Construction Projects Aren't Profitable (Even When the Budget Is High)

Construction projects often look like the most profitable work in an interior design business—but behind the scenes, they're where many designers are the most underpaid. In this episode, Michelle breaks down the hidden disconnect between what designers charge and what construction projects actually require. From the constant decision-making to the mental load that never turns off, she reveals why traditional pricing models fall short—and what needs to shift. If you've ever felt busy, overwhelmed, or undercompensated during a renovation or new build, this episode will help you understand why—and what to do about it. What You'll Learn Why construction projects feel profitable—but often aren't The hidden responsibilities designers take on during construction The difference between renovation (reactive) vs. new build (proactive) projects Where pricing structures typically break down The real cost of underpricing construction administration How "emotional pricing" quietly hurts your business Why raising your prices alone won't fix the problem What it actually means to align your pricing with your role Key Takeaways Construction projects don't just scale in size—they scale in responsibility. As the project grows, so does your mental load, decision-making, and ongoing involvement. Renovations and new builds are not the same. Renovations = reactive, unpredictable, fast decision-making New builds = proactive, structured, vision-driven You're not just designing—you're leading. During construction, you become the interpreter, problem-solver, and decision-maker for everyone involved. Flat fees often fail mid-project. What felt like a solid number at the beginning rarely reflects the true scope as the project evolves. Construction administration is not a "small add-on." It's a major, time-consuming, high-responsibility phase that deserves its own pricing structure. If your structure is broken, raising prices won't fix it. You'll just charge more for the same exhausting experience. Common Pricing Mistakes Pricing based on initial scope without accounting for project evolution Underestimating time, interruptions, and mental energy Including construction administration inside the design fee Making pricing decisions based on what feels "comfortable" Keeping fees fixed even as responsibilities expand Mindset Shift Stop asking: "What feels fair?" Start asking: "What does this role actually requ