Embarking on a new build or renovation project is an exciting journey, but amidst the excitement, the importance of budgeting cannot be overstated. We want you to enjoy the process of building your dream home.
For many, this is a once-in-a-lifetime opportunity.
Before you start planning, here are a few handy tips to help you on your way to budgeting like a pro.
Ensure you have a detailed understanding of the scope of your build.
Regardless of the type of contract you are building under, the builder should give you as detailed an estimate as possible. To do this, they need detailed plans, specs and scope of work. With limited planning, builders can only give you a limited estimate, and this can lead to additional costs down the track.
Therefore it is important to provide your builder with the most complete set of architectural and engineering plans and specifications that you can produce at the time.
For example, a set of DA plans rarely provides enough information for an accurate costing.
At CKC, we will take approximately six weeks to quote your build, we want to provide you with the most accurate estimate we can, including the costs of all suppliers and contractors. For us, it’s important to have an accurate cost base to start from, so that when changes are made, we can track those costs.
Understanding scope creep.
The number one cause of budget blowouts is changes and additions to the scope of work. Scope creep refers to the expansion of a project's goals, deliverables, features, or requirements beyond the initial quote.
Changes to the scope of work are primarily driven by the client and the architect.
You want that new bathroom, after all, it’s a once-in-a-lifetime opportunity, we want you to make changes along the way, so go for it…but remember that every change you make, no matter how small, will have an impact on your bottom line.
Through monthly meetings we’ll keep you up to date on where your budget is at, and any changes that have been made. You’ll have a clear idea of how much you’ve spent so far, and how much of your budget remains.
We will keep you in the light about where your budget is, and we try to eliminate the big surprise at the end of the project.
Underestimating Costs.
For us as builders, labour is the hardest part of the job to quote, especially with custom builds and renovations. We haven’t built it before, so we don’t know exactly how long it will take.
You’ve probably heard people say “It took longer than we thought it would” And to be completely upfront, that's the reality of building!
With a lot of moving parts and factors often beyond our control, it’s difficult to quantify with 100% accuracy.
When we produce our quote it will often be greater than your initial budget goals, it is important to understand that clients will often apply pressure to reduce costs at this stage, but as they become emotionally invested in the project, inevitably these costs will creep back in.
To conclude, in the realm of custom new builds and renovations, budgeting demands attention to detail, realistic expectations, and adaptability.
Building a house is extremely complicated, tracking costs and changes requires high levels of organisation, regular and open communication and an ongoing systemised budget plan.