What Are You Hoping to Spend on Your Project?

How much will my renovation, addition or new home cost?

It's one of the first questions we hear from prospective clients, and it's a fair one. Getting value for money matters to everyone, and it mattered to us too when we worked on our own homes. Here's how we help clients think about budget before a single line is drawn.

Start with your "why"

Most people already have a number in mind. That number almost always links back to what the project is meant to achieve.

• A forever home? You may be comfortable investing more, because you'll enjoy the benefits for years.

• More space to connect with family? The budget might focus on how the new areas bring people together.

• Building equity without over-capitalising? You'll want to be more strategic about where each dollar goes.

Each scenario calls for a different budget, and it helps to talk to your lender early about what you can comfortably borrow.

Sometimes our aspirations and our budget don't quite line up. That's normal. The right architect will help you decide where to allocate your funds so you can still achieve your "why". As design professionals, we know a home can be great, whatever the budget.

Total project cost vs construction cost

Two numbers matter, and it's worth keeping both in mind from the first design conversation.

Construction cost is the amount you agree with the builder to complete the scope of works. It's often the figure we design to.

Total project cost is everything you'll spend to bring the project to life. It typically includes:

• Your construction cost budget

• Design team consultants' fees (architects, engineers and others)

• Local and statutory authority fees

• Inflation between the project start and signing a builder's contract

• Design and construction contingency funds

• Furniture and special equipment

• Weather delays and associated costs

• Insurances

• Any applicable taxes

• Delays

You may also want to plan for costs outside the project itself:

• Relocation or removal costs

• Holding costs, including interest on borrowed money or on the land

• Legal fees

• Infrastructure costs

Many people set a budget based on the builder's price alone and are surprised by everything that sits around it. Mapping out the total project cost early avoids that.

Cost, time and quality

In our practice, we know these three are tightly linked. A low-cost house can be built quickly, but usually by reducing quality. A well-built, high-quality home generally costs more and may take longer.

So it helps to return to your "why" and ask yourself:

• Do you need the project finished quickly?

• Are you flexible on timing to ensure the workmanship is of the highest quality?

Your answers will shape the right balance for your project.

Estimates of probable cost

Your architect can talk through, in broad terms, how realistic your preliminary budget is against your brief. However optimistic you feel about the two, the right architect will be comfortable having those uncomfortable conversations about cost, and will help you get the best possible result.

One of the best ways to keep a budget on track is to have an estimate of probable cost prepared at key stages of the design. You might engage a specialist cost consultant or quantity surveyor to prepare detailed estimates and compare them against your construction budget as the design develops.

Early cost indications let you make informed design decisions sooner, reduce your exposure to risk, and steer the project toward a great outcome with greater certainty.

Let's talk

We wish you the best of luck with your project. If you have specific questions about budget or anything else, contact us by phone or email and our experienced team will be happy to help.

© Chadwick Architects  |  chadwickarchitects.com  |  This article is provided for general information purposes only and does not constitute legal or planning advice.

Disclaimer

This content is provided by Chadwick Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. Chadwick Architects endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time.