HPH241 : 10 tips for better budgeting on a self build – with Ben Adam-Smith
Feb 8, 2019
auto_awesome
Ben Adam-Smith, an expert in creating detailed and realistic budgets for self builds, shares 10 tips for budgeting. They discuss the importance of a starter budget, dealing with provisional amounts, allocating costs for various trades and suppliers, setting a contingency, using a quantity surveyor, and making smart financial decisions. They also cover challenges in preparing strip foundations for a masonry build.
Continuously refine the budget as the project progresses, making adjustments for provisional amounts and creatively repurposing spaces.
Consider all expenses when determining the budget, including property value, build cost estimates, furnishings, and architectural design fees.
Deep dives
Tip 1: Starting with a budget and fine-tuning it
A crucial tip in self-building is to establish a budget from the start and continuously refine it. While budgets may be tentative early on, as the project progresses, more detailed information becomes available. Adjustments may need to be made, particularly for provisional amounts allocated to certain items. For example, low allocations for bathrooms may lead to creative solutions, such as repurposing a bathroom into a storage room. This tip highlights the importance of starting with a budget and actively refining it as the project progresses.
Tip 2: Considering build costs and quality
When determining the budget, it is essential to consider not just the cost of building the house but also other expenses. Understanding the value of properties in the area is crucial as it helps determine an estimate for the build cost. This evaluation involves studying cost tables, such as those provided in magazines or books, to consider the size and quality desired. Additionally, decisions about build routes and the level of quality to be achieved need to be made. This tip emphasizes the need to plan for the completed home, including additional costs such as furnishings and architectural design fees.
Tip 3: Safeguarding the budget with contingency and quantity surveyors
Two key strategies for budget management are setting a contingency fund and involving a quantity surveyor. Budgets should include a contingency buffer, typically around 10% of the total budget, to account for unexpected costs or changes during the construction process. Additionally, enlisting the help of a quantity surveyor provides expertise and experience in cost management, ensuring greater certainty in budget projections. These measures help protect the budget and ensure that the project stays on track financially.