When I asked why this was caught earlier, she responded, "Based on the timelines you provided, we had a team fail including me...

Biggest lesson here for everyone is NOT to include utilities EVER!!!!!

Although, I completed several gut renovations including garage conversions, in the past, I recognize that this is a different beast.

if she had contacted me, I would have shown her what was planned to finish and discussed the financials. 

Quote from @Jimmy Jeter: Need some help to finish our house. 

Then it's simple, build the home, find crews to do the work (you should already have them basically from the prior step), excavation, concrete, sealing, framing, roof/gutters/siding, windows, insulation drywall, plumbing, HVAC, electrical, finishes, etc. basically in that order.

We completely gutted and finished the basement including adding a kitchenette and 3/4 bath, moved out and are now renting both apartments.

The punch list is taking forever to finish! 

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

Your 'cost' should include everything, from land purchase, soft costs, holding costs, and hard costs.