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Project & Building Budgets

February 7th 2020

RIBA Work Stages 0-1

Project Budget or Building Budget?

When starting any project it’s important that you establish a realistic budget from the start to determine whether or not the project is feasible for the amount of money available.

Non-building items can account for up to 30% of the building budget, and the extent of this should be understood before any meaningful design work can begin.

This figure can be determined in a number of ways, but generally you would start with the amount of money available in this example we will use £150,000 and make a series of deductions in order to ascertain the amount of building it will buy and whether it will meet your needs or not.

Below is an example of how this calculation could be done for say a domestic extension:

Project Budget £150,000.00
===================================
VAT (currently 20%) £25,000.00
Contingency (5%) £6,250.00
Professional Fees (15%) £15,000.00
Planning Fees (householder) £206.00
Building Regulations Fees £2,000.00
Level Survey £500.00
===================================
Building Budget £101,044.00

Then we need to take off big ticket items

Building Budget £101,044.00
Kitchen £7,500.00
Bathroom £7,500.00
===================================
Balance for Buiding £86,044.00

New Build

Divide this by a realistic cost per m2 eg £2000.00 will give the size of extension you should be looking for in this case circa 40m2

This can also work in reverse for new build if you know roughly how much space you want. The next example takes a new build house of around 100m2

100m2 House x £2,000/m2 = £200,000.00

However you will then need to add the big ticket items

Kitchen £20,000.00
Utility £4,500.00
Bathroom £7,500.00
En-suites (3nr) £10,000.00
WCs £2,000.00
MEP £25,000.00
(mechanical electrical
& plumbing)
Utility Connections £15,000.00
===================================
Total Building Budget £284,000.00

Professional Fees (15%) £42,000.00
Planning Fees (full) £462.00
Building Regulations Fees £4,000.00
Level Survey £500.00
Ground Investigation Reports £2,000.00
Arboricultural Report £1,000.00
VAT @ 20% £9,900.00
(only applies to some fees)

Contingency £17,200.00
===================================
Total Project Budget £361,062.00

Whilst the information above is far from exhaustive it gives a good starting points for the kinds of things our clients often don’t think of when planning a project.

Please note that the figures above are notional for the purposes examples only and should not be used to inform decisions on any specific project. Constructive Thinking Studio Ltd accepts no liability in respect of the above information which has been compiled for the purposes of illustration only.

Stuart Clark
Constructive Thinking Studio Ltd