How to keep a build on budget
Nobody starts a build planning to go over budget. But it's one of the most common worries we hear, and it's a fair one. The good news is that most overspends can be traced back to a handful of decisions, and nearly all of them can be managed early.
Here's what makes the biggest difference.
Be honest about your number from the start
Tell your builder your real budget, not a figure with some held back. It's the only way we can give you straight advice on what's achievable, where to spend and where to save. A design that's drawn beyond the budget costs time and money to redraw later.
Make sure your number includes the things that sit outside the build itself, such as:
Design and engineering fees
Council consents and inspections
Site works, services and driveway
Landscaping, fencing and window coverings
GST, if it isn't already included
Get the design and selections sorted early
The more that's decided before work starts, the more accurate your price will be. Finalise the layout, then work through your selections: cladding, joinery, kitchen, bathrooms, flooring, lighting and fittings.
Where a selection isn't made yet, it's usually priced as a provisional sum or allowance. That's normal, but it's also where budgets tend to creep. If you choose something above the allowance, the difference gets added on.
Keep a contingency, and leave it alone
We recommend setting aside a contingency of around 10% of the build cost, depending on the project. Renovations often need more, because you don't always know what's behind the walls until they're opened up.
Treat it as protection for genuine surprises, not a fund for upgrades.
Think carefully before changing things mid-build
Changes are part of building and we're always happy to talk them through. But a change after work has started can affect materials already ordered, trades already booked and work already done. Something that looks small on paper can have a bigger knock-on effect on site.
Before you approve a variation, ask:
What will it cost, including any flow-on work?
Will it affect the timeline?
Is it something I'll really notice in five years?
We'll always price a variation and explain it clearly before we go ahead.
Choose the right pricing model
A fixed price contract gives you more certainty. A cost plus contract gives you more flexibility, but you'll need to stay closer to the numbers. Neither is wrong, but it helps to pick the one that suits how you like to work. Our guide, Cost plus or fixed price?, goes into more detail.
Stay in regular contact with your builder
Good communication keeps budgets on track. You should know where your project is at, what's coming up, and whether anything is likely to affect cost. At Dufty+Co you'll deal with Dan directly, and we keep you updated throughout the build so there are no surprises at the end.
Planning a build?
If you'd like help working out what's realistic for your budget, get in touch. We're happy to talk it through before you commit to anything.