How to Compile Your Building Project Budget
Money is the determining factor for almost every aspect of a building project, regardless of its scale. Careful planning and budgeting are crucial to avoid any unforeseen costs or delays that could arise during a building project.
Compiling a budget for a building project requires a sharp mind and almost obsessive attention to detail.
There are many aspects to consider when you're compiling your budget and every project, whether it be a new build, and extension, or a renovation, is different and will have its own specific financial requirements.
However, some costs are standard and will form part of any construction project budget and it’s important to consider these from the beginning.
You may be asking is: “Where do I begin?”
We’ll unpack the crucial elements in financial planning for a building or renovation project for you below.
Estimating building costs
At first, this will seem like a guessing game, but there are some tools to help you with your initial planning. Using a building cost estimator will give you an idea of how much money you should be planning to spend on your construction project and will serve as the starting point for your budgeting.
However, this is only an estimated building cost and you will need to get official, accurate quotations from suppliers to get a more detailed figure.
This is a cost that should be discussed as early on in the process as possible to avoid any accumulating fees. Communication with your chosen team is crucial when it comes to consultation fees.
In the first consultation with your designer, architect, or other building contractors, find out exactly which consultations will be billed for and what those costs are. If you both agree on a billing structure for the duration of the building project, draw up a contractual agreement and also add those costs to your budget.
These fees are often the most overlooked. Doing your research in advance around any administrative fees your suppliers may charge will serve you well in your budget planning and ultimately, your spending.
In addition, you will also need to take official offices’ processing and approval fees into account. This will include the building plans approval processing fees, for example.
Any building project, regardless of size or complexity, will require skilled labour. However, these costs often accumulate unobserved and can lead to conflict between customer and service provider later on, or even after the build.
Communication and proper project management could mitigate this and avoid disputes around labour costs altogether. Having discussions around and agreeing upon the labour costs involved in your project before a single brick is laid will give both parties the assurances they need.
It is also important to keep in mind that unforeseen challenges could arise during the course of the construction project that may require additional, unplanned labour. These fees also need to be discussed and agreed upon from the outset as a provision.
Should unplanned labour be required, both parties need to communicate and approve it. It is advisable to include more than the quoted amount for labour in your budget to ensure that you have additional funds should any problems arise.
Building supplies cost
The cost of supplies will be determined by the quality of the building materials, the availability, and, of course, the supplier. When determining these costs in your budget, remember that when the project is complete you will need to live in and maintain the space – always consider quality over cost.
That being said, question and compare the quotations you receive and also do additional research. Overpriced does not equal quality.
When it comes to choosing your supplies and materials you may also want to involve your team of industry experts and ask for their advice on the quotes you’ve received. Be absolutely sure about your choice before making any payments.
Financing your building project
After you’ve carefully budgeted for every detail of your new home or renovation, it’s time to make sure that you can comfortably afford it. This involves some longer-term planning, for even after the project is completed.
Whether you’re planning to personally finance a new construction project or taking out a home improvement loan for an extension, it is advisable to get expert advice. At Binastore, we help you every step of the way and offer financial advice specifically for construction projects. Contact us and start planning your dream home.