Construction Basics: Working with a Budget

Construction Basics: Working with a Budget

Unless you have an unlimited source of cash, chances are that you will be working with a budget on your home construction project. However, the fact of the matter is that the building process will likely cost more than anticipated.

After all, it is a grueling process and even the smallest of mistakes can end up seriously costing you. As with life, you need to prepare for the unexpected when building your own house. Accidents and mishaps can occur at any given time – both of which cost money.

That said, even if the builder gives you an estimate of the projected costs, there are still other things that you need to take into account. These include:

  • Zoning Fees
  • Site Costs
  • Property Taxes
  • Installation of electrical and gas meters
  • Connection of internet services or window coverings.
  • Landscaping
  • Finishing Costs.

Your budget will vary depending on the size of your home. For example, small bathroom design will not cost you as much as a design for a large bathroom area. The same is true for your kitchen and living spaces. Construction or renovation design costs should be factored in to every project, and can make or break the budget very quickly!

Remember that even things like fences, gates, and the pouring of outdoor concrete can add up and bloat your expenses. That said, best prepare an additional 15-25% of your budget. This should give you enough runway to cover the extra costs not included in the initial budget estimate.