Costing your project

So many times when I meet a new client they have a sum in mind – perhaps based on a figure a builder has given them as a guide to the cost of the building work – to spend on their project and usually assume that this sum will be spent solely on the construction cost.

It can come as a shock to clients when I point out the reality that if they have, say, £30,000 to spend, the sum they actually have to spend on construction will actually reduce to around £20,000.  This is because allowances need to be made for statutory fees charged by the Local Authority for Planning Approval and Building Regs approval, professional fees for the architect and also perhaps a structural engineer, plus the dreaded VAT at 20% chargeable on all extension and alteration work and sometimes on professional fees.

This is such a vital issue to understand right from the beginning of a project and it is always surprising how many people don’t take this into account and are consequently disappointed in the amount of money actually available for construction.

11 thoughts on “Costing your project

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