My experience of customer’s is that I can give a ball park figure to establish a budget expectancy, in the region of £1,500/sq m. If that budget expectancy is deemed affordable, a more detailed quote is then prepared, often with contingencies noted for unforeseen things that can and do crop up. Final quotes with a complete wish list can get up to £2,200/sqm easily.
However, IME, once the work starts, things like the basic fixtures and fittings are upgraded. For example, basic MK plastic light switches are changed to much more expensive metalled ones. Similarly, once the customer gets an idea of the actual new space available, additional requirements that were initially dismissed by the customer, become desirable. Likewise, final decoration, that was first agreed to be completed by the client, also gets added, ‘because we are there, so you might as well do it too please’.
This is easily managed with frequent budget reviews and the additional desirables/wants are itemised against the original quote.
The biggest reason for the situation as described by richc, is the customer going for the cheapest quote, with many of the required bits to provide a finished build not actually included in the quote. So there are indeed some unscrupulous builders. Get at least 3 quotes and if one is significantly cheaper, buyer beware! I am generally not the most expensive but not the cheapest either, but I include everything that can be foreseen as far as I am able. This does mean I do not get every job I quote for, because I haven’t provided the cheapest quote. For those, I am happy not to get as it generally means that the client cannot actually afford what they want.