Why does inset cabinetry cost more to build and install?

Inset cabinetry requires extremely tight tolerances — typically a 1/16" to 3/32" reveal gap on all four sides of every door and drawer. Because wood expands and contracts seasonally (especially in Alberta's climate), the face frame must be built from dimensionally stable species and the reveals must be calibrated to the expected humidity range of the home. Inset hinges are also significantly more expensive than overlay hinges and require precise mortising.