Episode Notes

In this episode, we tackle one of the most important and often misunderstood aspects of a church building project: the budget. Churches frequently underestimate the true cost of construction, and the gap between expectation and reality can derail a project before it gains momentum. We break down what construction actually costs in Ontario in 2025 and 2026, and explain why the numbers may be higher than many congregations expect.

We explore the hidden costs that regularly catch churches off guard. Site servicing, development charges, geotechnical requirements, furniture and technology fit-out, professional fees, and project contingency are all line items that can add significantly to the bottom line. Understanding these costs early allows your committee to plan realistically rather than reactively.

Budget overruns are not inevitable, but they require discipline to prevent. We discuss the most common causes of cost escalation, from scope creep during design to delayed decision-making during construction, and share the strategies that keep projects on track. Central to this is the concept of contingency: how much to set aside, when to use it, and why it is not a slush fund for wish-list items.

We also talk about when it is appropriate to begin conversations with a lender. Many churches wait too long to understand their borrowing capacity, which limits their options later in the project. We outline the typical lending landscape for churches in Ontario and what financial institutions look for when evaluating a church construction loan.

Topics Covered

About the Host

Hosted by the team at Hawkey Church Management Inc., drawing on 50 years and over 500 church building projects across Ontario.

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