How to Set a Realistic Budget for Your Build

Building or renovating your home is an exciting journey, but without a clear and realistic budget, it can quickly become overwhelming. At Brands Built, with over 20 years of experience in residential and commercial construction across Sydney’s Northern Beaches and North Shore, we’ve seen firsthand how careful planning can lead to successful projects. Here’s our step-by-step guide to help you set a budget that aligns with your vision and financial goals.

1. Define Your Project Scope Clearly

Before diving into numbers, have a detailed understanding of what your project entails. Are you building a new home, adding an extension, or renovating specific areas like kitchens or bathrooms? Clearly outlining the scope helps in estimating costs accurately and prevents scope creep during the project.

2. Engage Professionals Early

Involving a builder and an architect from the outset ensures that design ideas are feasible within your budget. This collaboration allows for valuable input on construction methods and material choices that align with your financial plan. For instance, Brands Built often works closely with designers to ensure that the final plans are financially feasible.

3. Break Down Costs into Categories

Organise your budget into categories to get a clearer picture:

Site Preparation: Excavation, grading, and permits.
Construction: Foundation, framing, roofing, and exterior finishes.
Interior Finishes: Kitchens, bathrooms, flooring, and painting.
Utilities and Services: Plumbing, electrical, and HVAC systems.
Landscaping and External Works: Driveways, fencing, and outdoor living areas.

Utilising a construction cost breakdown sheet can help in tracking and managing these expenses effectively.

4. Include a Contingency Fund

Unexpected expenses are common in construction projects. It’s advisable to set aside 10-15% of your total budget as a contingency fund to cover unforeseen costs. This buffer can prevent financial strain if unexpected issues arise.

5. Prioritise Spending

Determine which aspects of your project are most important to you and allocate funds accordingly. For example, if a high-quality kitchen is a priority, consider allocating more funds there and saving in other areas like landscaping or non-essential finishes. This approach ensures that your most valued features are not compromised.

6. Obtain Multiple Quotes

Collecting quotes from several reputable builders and contractors allows you to compare prices and services. Ensure that all quotes are based on the same scope of work and materials to make an accurate comparison. This practice helps in identifying the best value for your investment.

7. Plan for Future Costs

Consider long-term expenses such as maintenance, energy efficiency upgrades, and potential renovations. Planning for these future costs can prevent financial surprises down the road and ensure the longevity of your investment.

8. Monitor and Adjust Your Budget Regularly

Throughout the construction process, regularly review your budget to track actual expenses against estimates. Adjustments may be necessary as the project progresses, and staying informed allows you to make timely decisions to stay within budget.

9. Consult with Experts

If you’re unsure about any aspect of budgeting or cost estimation, don’t hesitate to consult with professionals. Architects, builders, and financial advisors can provide valuable insights and guidance tailored to your specific project and financial situation.

Ready to Build Within Your Budget?

At Brands Built, we specialise in delivering high-quality builds and renovations that align with our clients’ budgets and expectations. With our extensive experience in the Northern Beaches and North Shore areas, we understand the unique challenges and opportunities these regions present. Our team is committed to transparent communication, meticulous planning, and exceptional craftsmanship.

A Practical Guide by Brands Built