Posted 6 months ago | Share on Facebook | Share on Twitter
When you budget your project correctly, you’re more likely to get the most for your money. Let’s find out more.
Whatever the size of the project you’re undertaking, you need to budget correctly. Without an accurate picture of the project’s costs, it’s easy for things to spiral out of control. Your budget can also influence how long your project will take and the profits you will make further down the line.
The problem is that budgeting is tricky. The sheer scope of a project and all its different components can make it overwhelming. And then you have all the things you didn’t budget for. In this article, we’ll try to simplify budgeting for you with these handy tips. Follow our guide and next time you’re preparing a new property design project, you can plan with confidence.
Your Architect will advise on the best ways to work through your budgeting options, which for larger residential or commercial projects it is standard practice to appoint a Quantity Surveyor or cost-consultant.
A quantity surveyor (or QS) is a professional who specialises in the estimation, analysis, and control of costs in construction projects. During the works onsite they will monitor costs to ensure the project stays on budget and on time, by tracking expenditures, identify cost overruns, and implement proactive strategies to ensure these issues don’t result in financial setbacks and delays.
If they are appointed for the earlier stages they can provide preliminary cost appraisals and advise on cost-effective designs
For other smaller projects you may decide to work through costs yourself, and following the steps below will give you a healthy starting point:
The first step in budgeting is deciding precisely what you need and what you don’t (and what would be nice to have if you could). Think about what you want to achieve with your project:
It’s likely that after this, you’re bursting with ideas. However, you might also feel a little overwhelmed with the sheer amount of work it will take. How can you even start to build up an accurate picture of costs?
The trick is to break everything down into a series of smaller chunks, working out a budget for each of them individually, then putting it all together to build an overarching budget. For example, don’t just try to come up with one number for a bathroom straight away. Break it down to a price for the toilets, sinks, hand driers, etc.
At this stage, it’s also a good idea to estimate costs for each task rather than get quotes. Use historical data from previous projects if you have it. You might find that you need to alter the scope of the project if these estimates come in too high for the money you want to spend. It’s easier to change your plans now rather than later.
Now’s the time to start getting concrete quotes for each task you detailed earlier. Talk to as many contractors as you can, by having a number of comparable quotes will give you the opportunity to see if any particular aspects are over-priced, or just too expensive for your budget. All contractors work differently, and they’ll have different ideas about how to bring your project to life. This leads to variations between contractors on prices and timescales.
But remember one thing. There is more to the success of a task than price. Often, you get what you pay for. While it’s essential to consider the prices contractors quote to keep your budget under control, don’t neglect factors like experience, reputation and customer service.
Once you’ve spoken to contractors and decided who will do what, you should have a more accurate picture of your project’s budget. But you’re not finished yet.
Every project encounters challenges, most of which cost money to solve. For this reason, you always need to have some budget over and above your quotes for contingencies.
Where could these extra costs come from? It could be anything from fixing something you didn’t know was wrong with the building, changes in the price of materials, or replacing a contractor after a breakdown in your relationship. Whatever it is, it’s always a good idea to expect the unexpected. Best practice is to allocate an extra 10-15% to your quotes for contingencies.
Another factor to consider is the impact of your project on your business, especially if it can’t be finished on time. Look at how you’ll run your business and how it will affect your costs and revenues if you can’t make money from your new design for an extra month, for example.
By following our guide, you can avoid those budgeting headaches and make the best decisions for your commercial design project – and your business.
To find out more about Harvey Wright Architects, call 020 3239 6044 or visit hwarchitects.co.uk.
© Copyright Harvey Wright Architects 2024.
© Copyright Harvey Wright Architects.
