In this article we cover:
- Top 5 reasons budgets run out of control
- Examples of how much each element costs
- How to protect yourself from cost overruns
Jack Hounsham, Appledown Projects
When it comes to self-builds and major renovations, it’s rarely the first big number on your spreadsheet that derails your budget. Instead, it’s the surprises and slow leaks along the way.
After years working on residential projects across the UK, I’ve seen the same culprits time and again. And they’ve very little to do with the bricks and mortar.
Here’s how you can avoid the most common ‘budget busters’ and keep your costs on track from foundation to finish.
1. Scope creep
Perhaps the most insidious budget danger is ‘scope creep’: the gradual expansion of your project’s ambitions or specifications. It starts innocently: a nicer tile here, an improved window spec there, maybe a more elaborate staircase. Suddenly, you’re far beyond your original plans and thousands out of pocket.
How to avoid it:
- Lock down your specification and finishes early.
- List your ‘must-haves’ and ‘nice-to-haves’ before you start; treat every add-on as a conscious, budgeted choice, not a spur-of-the-moment indulgence.
- Talk openly with your builder / contractor about any changes and always ask for a costed variation before approving extra work.
2. Kitchens
Kitchens seduce even the most disciplined self-builders. It’s easy to start with an entry-level fit-out, such as £10k to £12k for a standard flat-pack supply and fit, then blow past £30k with upgraded cabinets, worktops and appliances. For high-end custom installations, the sky is the limit.
How to avoid it:
- Set a realistic budget for the kitchen from day one and stick to it.
- Include installation costs, appliances and a small contingency for must-have upgrades.
- Visit showrooms to get ideas, but don’t let salespeople pressure you. Keep in mind that a fancy kitchen often adds less to your home’s resale value than you might expect.
3. Mechanical & Electrical (M&E)
Mechanical and electrical systems (including heating, ventilation, smart home tech and lighting) can easily account for 20 per cent or more of your total build costs.
Today’s market offers endless choices, and ‘nice-to-haves’ like smart home systems or upgraded fixtures can quickly increase your spend. For example, in a recent project, just changing all the faceplates from standard white to antique brass added £7,500.
How to avoid it:
- Agree on your M&E specification early, with room for only a carefully budgeted wish list.
- If you want smart home features, let your quantity surveyor know at the start so these costs aren’t surprises.
- Don’t chase ‘latest and greatest’ unless it fits your lifestyle and your long-term budget.
4. High-spec finishes
It’s tempting to splurge on premium tiles, flooring or wall finishes, especially when you see beautiful options mid-build. However, many of these upgrades offer little return on resale.
How to avoid it:
- Differentiate between features that are essential (for comfort, code or resale) and those that are purely personal.
- Make two lists and allocate two budgets: one for ‘resale essential’, one for ‘personal luxury’. Know the difference and make a conscious decision when investing in personal luxury.
5. Underestimating contingency
If you’re renovating an older property, hidden costs like dry rot, old wiring or undocumented previous alterations can be tough to handle. Even new builds aren’t immune to surprises, especially when it comes to the foundations.
How to avoid it:
- The rule of thumb is to allow around 10 per cent contingency for new builds and 20 per cent for refurbishments, especially older houses.
- Invest in surveys and trial pits upfront to minimise nasty shocks below ground or behind walls.
Top tip
Plan ahead, focus on priorities and monitor spending closely.
Involve a quantity surveyor early and regularly review your budgets for essentials and nice-to-haves.
Treat decisions as investments, not impulses, for a smoother build and healthier bank balance.
Jack Hounsham, founder, Appledown Projects – Principal Contracting and Construction Management company.
