How to Bring Your Build in On Budget
Time is money on a building site and in so many cases, buildings cost more because of the amount of extra time that has gone into them. It might be that a bad week of weather made the site unworkable for a few days or that a supplier was lagging behind the rest of the process – whatever it is, it costs. But this isn’t the only way your budget can suddenly dwindle. Have you thought about a contingency fund? What about fixtures and fittings?
Here are a few things you can do to reign in your spending.
Fixed Price Deal
Many contractors will now offer a fixed price rate that means that you are assured of the price before you begin any work. This is a great option for first-time builders, or for people who would prefer not to be managing every minute of the day to get the best results. A fixed price deal gives you peace of mind that the budget will be maintained no matter how long the project runs.
However, a fixed price deal can come with some complications so it is always best to get a construction surety bond to protect you against any losses should anything go wrong in the project. A company like Poms & Associates is a good choice because they can also advise you on program management and any financial challenged you may face.
Always Have a Contingency
Of course, the real key to bringing a project in on budget is this: always have a contingency budget. A contingency fund is a pot of money that you put aside and only use if you absolutely have to due to unforeseen circumstances. Usually, the fund is between 5-10% of your total budget, though you may wish to increase this if you are taking on a larger risk than usual, such as a new construction method or material that may not work.
The purpose of the contingency fund is essentially to insure yourself against any unexpected costs. While it might be tempting, you should never choose to blow the contingency money on extra things for your building until you are certain that the building will be completed on time – ideally, when the keys are in your hand and all the contractors have finished their work!
Shop Around and Be Creative with Finishes
It is incredibly tempting, especially if you are self-building a home, to go all out on expensive finishes that eat into your budget and end up costing far more. Instead of focusing on what is most expensive, focus on your design principles and what you want to achieve in your building. It may be that what you really want isn’t as costly as you think.
The best solution is to be creative with your finishes and reuse as many materials as possible. For example, you can buy second-hand roof tiles at a fraction of the cost, or use reclaimed wooden floors and get the almost same effect. With a few smart decisions, finishing your building should be doable within your budget.