We won’t lie to you, creating a robust self-build budget is challenging. Prices of materials can fluctuate. Timescales can be thrown out of sync by on-site errors out of your control. Professional fees can add up quickly. It’s easy to see how self-builders can go over budget.
Creating the right budget is one of the most crucial aspects of the entire build, but what happens if it can no longer support the project? There are an endless number of ways for your project to go over budget. If you find yourself in this situation, it's time to take a step back and look at ways to fix the situation.
We’ve worked on over 550 residential projects, so we know a thing or two about how to handle costs. That’s why we’ve put together a list of helpful steps to take if your self-build goes over budget:
1. DON'T PANIC!
We appreciate going over budget can be stressful, but take it from us, it’s not the end of the world. According to UK Construction Online, around 69% of construction projects in the UK exceed their budget. It’s a common problem that can be overcome with planning and contingency.
Building a home is a complex process that rarely goes perfectly according to plan. Being able to adapt while maintaining a positive outlook on things will help you navigate these challenges and find the right solutions to your budget issues.
2. REVISIT YOUR BUDGET
Prioritise essential elements that are critical to the completion and functionality of your home. Non-essential items, particularly those that can be added later, should be put on hold. Make a list of “must-haves” versus “nice-to-haves” and focus your resources on the former.
3. CONSIDER ALTERNATIVE MATERIALS
Are your material choices costing way more than you anticipated? Maybe it’s time to swap out some of your more expensive items with cost-effective alternatives. A classic radiator over an underfloor heating system, natural timber over composite cladding or sacrificing granite for standard laminate. Changing materials can make a massive difference.
This method is especially effective if your costs are rising faster than anticipated as you approach the construction stage. Sourcing new materials might lead to delays in certain areas, but it’s worth it if it keeps you in budget. Additionally, you should keep an eye on limited time discounts and promotions that pop up when shopping for your materials.
4. BRING IN A PROFESSIONAL
Sometimes it costs a little to save a lot, and there are plenty of construction professionals out there who have experience in working with over-budgeted projects.
You should ideally have one already, but a quantity surveyor (QS) can help you to understand your costs and ensure the project’s finances are efficiently managed from conception to completion. Additionally, an experienced project manager can come on board to take the reins and get your build budget back under control.
Try seeking advice from a financial advisor to explore other funding options or restructuring your finances. Services like BuildStore can provide tailored advice on finances and offer self-build mortgages to those without the sufficient capital.
To find out more about these roles, click below:
5. SPEAK TO OTHERS IN YOUR POSITION
Roughly 13,000 self-builds are completed a year in the UK, and you won’t be the first to go over-budget. Forums such as BuildHub are a great place to speak to other self-builders who have suffered similar hardships. Speak to former builders to try and gain useful advice from similar projects that overcame budgeting issues. From our experience, they’re always happy to help out.
There are a multitude of other self-build resources you can utilise to learn more about your next steps. Webinars such as those at the NSBRC or AC Architect's own Self Build Hour are simple, cost-effective ways to hear from experienced self-build professionals.
6. GET STUCK IN
A true self-build is about getting involved. If the weight of professional fees is becoming too heavy, look to see if there are parts of the project you can complete yourself. Taking on some of the labour can significantly reduce costs. Ensure you only tackle tasks you’re confident in completing to a high standard, as poor-quality work can end up costing more in the long run. Even menial tasks such as sweeping up the site can save significant time and resources. Try and find friends or family with relevant skills who may be willing to help, too.
7. EXAMINE YOUR NON-ESSENTIAL ITEMS
If your build is over budget, it might be time to reduce the scope of your project. Put a focus on completing the essential parts of the home first during construction, such as the structure, utilities, and basic finishes. These are the critical components that need to be prioritised. Non-essential design features can be delayed or removed if need be.
What aspects of this build do you really need? What can you live without? These are questions you should be asking yourself, as sometimes the design itself can be the primary source of budget issues. It might be time to revisit the drawing board and tweak the original plans. Reducing the design scope may require new drawings from your design team but will reduce your financial concerns in the long run.
8. PHASING YOUR PROJECT
In most cases, this project is going to be your forever home, so it might be time to streamline your project into phases. Phasing a self-build means breaking down the construction project into manageable stages or phases, completing one phase at a time rather than trying to do everything all at once. This approach allows you to manage your budget more effectively, making it a little more organised and a little less overwhelming.
Splitting your project into phases spreads your expenses over a longer period. If you’re still working or are receiving a pension, more time in between build stages allows you to put more money behind your project, making it easier to handle financially.
We understand adding more time to an already-lengthy process is not what you want to hear, but it might help to keep your project afloat. If Rome wasn’t built in a day, your home won’t be either.
HOW TO MAKE SURE YOU DON'T GO OVER BUDGET
If you’re reading this and you’re still at the beginning of your self-build journey, then you’ll be taking all the necessary steps to ensure you don’t end up in this situation. Here are a few things we recommend you do to stay on time and in budget:
- Work with a self-build architect who holds the relevant experience with projects like yours.
- Bring a quantity surveyor on board to manage your finances
- Utilise self-build resources such as the NSBRC to gain useful information from industry experts and avoid common pitfalls.
- Check out our article on ways to save money on your self-build (click here)
And ultimately, consider the above points before you begin your build. Remember, the goal is to create a home that suits your needs and lifestyle, and with careful management, you can achieve that even in this financial landscape. Going over budget on a self-build can be a daunting experience. However, with the steps we have provided for you, you can manage the situation effectively and get the project back on track.
