Meeting Your Budget

Many of us have heard horror stories of budgets not met. The truth is, no matter what the cost of a project, the budget is usually a major limitation, and scary things can happen when one of the major players in a project ignores it. The best way to meet a budget is to treat it with great respect at the outset. No one wants to crush a dream, but it’s important to know the budget goal. The project’s budget should be a matter of frequent and honest discussion among the owner, the designer and the contractor, as each can make contributions to keep costs down and stay within budget.

The Owner Can:

  • Prioritize your wish list. Separate the “needs” from the “wants”. To add “wants”, you must alter priorities, reduce quality, or expand the budget.
  • Compromise. If the main living space is the highest priority, can the bedrooms be smaller? Can an office be shared or vinyl flooring substituted for ceramic tile?
  • Complete the project in phases. Some items or areas may be easily added later.
  • Develop a trusting relationship with the contractor through frequent and clear communication. Stay in touch with your contractor to eliminate misunderstandings that can lead to costly errors.
  • Shop smart. Know what you need in advance to take advantage of sales. But be aware of storage costs and the potential for damage. Make selections promptly, as you’ll pay dearly for rush orders and for holding up subcontractors.
  • Select “finish materials” carefully. Cabinetry, flooring, plumbing and lighting fixtures can account for 20% of the total budget.

The Designer Can:

  • Know current cost information. Work closely with the contractor to determine the project’s cost as early as possible and to work within budget restrictions.
  • Keep the structure simple. Complicated roof lines may look good, but may not need to be on the priority list. Complex foundation designs can also add disproportionably to project costs.
  • Select a few well-crafted details or materials for a big impact. Custom millwork, elaborate entrance hardware and geo-thermal heating cost more than average, but have big impacts. Vinyl windows, standard roof trusses and laminate countertops are cost-effective elements.
  • Design within a 2-ft. and 4-ft. grid. This minimizes waste of material and labor.
  • Plan. Keep the design flexible so future changes can occur without a lot of expense.
  • Keep an eye on life-cycle costs. The ongoing costs of maintaining a house can be significant. Don’t skimp on insulation and other energy-conservation measures. Choose durable long-lasting materials.

The Builder Can:

  • Provide cost information to the owner and designer. This will assist with decision-making by identifying systems, materials and details that are disproportionately costly.
  • Suggest alternatives and options. Building systems, construction details and materials that may be less expensive or provide higher value are wise alternatives.
  • Be organized. Careful planning and scheduling can make the construction process more efficient, saving everyone both time and money.

Work as a team: These are only a few ways to get a handle on the budget. To meet this goal, all parties must work together and communicate openly and frequently. If one party shrugs off the need to remain within the budget, everyone else’s best efforts can ultimately fall short. In the end, remember that communication, good planning and creativity can fill big budget gaps.