Did you know that most people who build a new home go over budget? This is somewhat surprising considering most people who build do so to try and save money! There are lots of different reasons your build can run over budget. Here are the top five causes of budget blowout.
1. Not enough time spent planning
Most people who’ve built often say they wish they’d spent more time planning their build, before construction actually started. It’s much easier to change things on a plan, than it is to start moving bricks and mortar or changing plumbing and wiring. You may be keen to get started, but you’ll save time in the long run by spending more time on planning in the early stages.
2. Poor quality documentation
Vague or poor quality documentation can affect the accuracy of the quote you receive. It means that everyone involved in the quoting process has to make assumptions. This leaves room for error and costing inaccuracies.
3. Dreaming too big
It’s natural to want to get exactly what you want when you build your dream home. But unfortunately most of us have a limited budget! Sure, it’s important to plan upfront – it saves time and money in the long run. But you also have to understand the cost implications of the choices you make. For example, high ceilings will require non-standard windows and could also increase the cost of internal lining, external cladding, lighting and scaffolding. This all adds up! So carefully consider the initial decisions you make. A good builder should be able to help guide you through this process.
4. Taking too long
Overrunning the project timeline is quite common. But remember, time is money when it comes to building a home. Delays can mean having to find different tradespeople, make additional interest payments, and having to extend approvals. These are all costly outcomes that can be avoided by sticking to the original timeline.
5. Making changes on site
As mentioned above, when you’re in the planning stage, making changes is relatively inexpensive. But the minute dirt is turned on site, every change (known as a variation) will cost you – in both time and money. So if you decide that you want to make changes on site, be prepared for budget blowouts.
To find out how you can avoid the pitfalls that lead to budget blowout, click here. Hallmark Homes can also make sure you stick to your budget with our Fixed-Price Guarantee.