The Hidden Costs of Construction That Homeowners Should Plan For

Avoiding Budget Surprises & Planning for a Smooth Build

Luxury landscaping is a significant investment, and most homeowners focus on the big-ticket items—pools, outdoor kitchens, and elegant hardscapes. But what many don’t realize is that there’s more to landscape construction than meets the eye.

Beyond the visible design elements, there are hidden costs that can impact the budget—sometimes significantly. Permitting fees, site preparation, drainage solutions, and even utility upgrades can quickly add up, leaving homeowners frustrated when unexpected expenses arise.

If you’re building a high-end custom landscape, this guide will help you plan smarter, budget better, and avoid costly surprises.

Permitting & Development Fees

What Homeowners Don’t Realize About Permitting

• Some landscape elements require separate city permits, including:
  • ‍Pools & spas
  • Outdoor kitchens with gas/electric hook-ups
  • Ramadas, pergolas, & covered structures
  • Significant grading & drainage modifications
  • Retaining walls over a certain height
    
    
• Permitting fees vary by city and scope, but they typically range from $500 to $5,000+.
  
  

Developmental Impact Fees

In some Arizona municipalities, new construction homes—including their site development and landscaping—are subject to Developmental Impact Fees. These fees cover infrastructure improvements like roads, fire stations, and water treatment facilities.

• In some cases, these fees can exceed $40,000.
• Cave Creek and Peoria, AZ are known for particularly high impact fees.
• Impact fees are based on lot size, land disturbance, and municipal requirements.

Smart Tip: If your new build is in a municipality with high impact fees, be sure to account for this in your overall construction budget to avoid sticker shock.

Site Prep, Soil Testing & Hard-Dig Situations

Why This is a Must-Consider Cost

Not all desert soil is construction-ready—and before your landscape can take shape, your site may need testing, grading, or special engineering solutions.

• Soil Testing: Determines if the ground is stable for retaining walls, driveways, or pools.
• Grading & Leveling: Essential for proper drainage and preventing erosion.
• Soil Amendments: Some properties require additional organic matter or conditioning to support plant life.

Soil testing: $1,500 – $5,000
Grading & earthwork: $5,000 – $20,000+ (if significant modifications are required)

Hard-Dig Situations: When Excavation Gets Expensive

A common challenge in Scottsdale landscapes is hitting bedrock or caliche—a hardened natural layer of soil cemented by calcium carbonate.

• Bedrock: If encountered during excavation for a pool, footing, or deep planting, it may require specialized equipment or even blasting in extreme cases.
• Caliche: This dense, concrete-like layer is notorious for making excavation difficult and preventing water penetration, which can impact drainage.

Hard-Dig Excavation Costs: $5,000 – $15,000+ (depending on severity and site conditions)
Extra Equipment or Jackhammering: $2,500 – $7,500

Smart Tip: Before finalizing your landscape design, conduct a soil evaluation to identify potential excavation challenges early—this helps avoid unexpected delays and budget overruns.

Drainage Solutions & Erosion Control

Arizona may be dry most of the year, but when monsoon season hits, improper drainage can cause serious damage.

If your property isn’t properly sloped or lacks an adequate drainage plan, you could end up with:

• Standing water on hardscapes and patios
• ‍Foundation issues due to poor water runoff
• ‍Flooding near your home or in planting areas

Common Drainage Costs:

• French drains & trench drains → $3,000 – $7,500+
• Retention basins & stormwater management → $5,000 – $15,000+
• Dry riverbeds & erosion control → $5,000 – $20,000+

Smart Tip: Always assess your lot’s natural drainage during the design phase—fixing drainage issues after installation is much more expensive.

Utility Upgrades (Power, Gas & Water)

If your landscape includes an outdoor kitchen, pool, or high-end lighting system, you’ll need to extend utilities—which isn’t always straightforward.

Hidden Costs to Consider:

• Electrical Upgrades – Needed for landscape lighting, spas, and kitchen appliances.
• ‍Gas Line Extensions – Outdoor kitchens, fire pits, and heaters require dedicated gas lines.
• ‍Water Line Installation – Pools, irrigation, and outdoor sinks need water supply & drainage.

Typical Costs:

• Electrical upgrades → $2,500 – $10,000+
• Gas line extensions → $3,000 – $12,000
• Plumbing/water supply → $2,500 – $8,000

Smart Tip: If your outdoor kitchen or pool is far from the main house, running utilities will be more expensive—plan for this in advance.

Changes During Construction (Change Orders)

Even with a detailed plan, changes happen. Maybe you fall in love with a different stone for your patio, or you decide to expand the fire pit area.

But mid-project changes (also called change orders) add time and cost.

Unexpected Costs from Changes:

• Material Upgrades – Upgrading countertops, pavers, or appliances can add thousands.
• ‍Scope Expansion – Extending patios, adding more lighting, or increasing plant count increases labor & material costs.
• ‍Delays & Additional Labor – Adjustments require new approvals, revised plans, and extended timelines.

Smart Tip: Set aside 10-15% of your landscape budget for unexpected changes—this keeps stress levels low when adjustments are needed.

How to Plan for These Costs & Avoid Surprises

• Work with an experienced landscape professional who understands the unique challenges of Scottsdale properties.
• ‍Request a detailed bid with a full breakdown of costs—including site prep, utilities, and drainage solutions.
• ‍Set aside a 10-15% contingency fund for unexpected expenses or mid-project upgrades.
• ‍Ask about permitting requirements upfront so you’re aware of any impact fees or city requirements.

Final Thoughts: Smart Budgeting Leads to Better Results

A well-executed luxury landscape isn’t just about aesthetics—it’s about functionality, longevity, and smart planning. Understanding these hidden costs ahead of time ensures that your project runs smoothly without unexpected financial surprises.

Thinking about a custom landscape? Let's talk about your vision, budget, and expectations—so you can plan confidently and avoid any hidden costs along the way.

Contact me today to start your project on the right foot.