GuidesConstruction
Construction budget: items to plan
Land, work, professionals, permits, fees and contingency.
The land and its acquisition costs
The work, per the signed contract
Architect and engineer fees
The main items
- The land and its acquisition costs
- The work, per the signed contract
- Architect and engineer fees
- Permits and service connections
- Interest paid during construction
- Contingency, as a percentage of the total
The common mistake
Construction interest is often forgotten. It accumulates over several months.
Costs people forget
- Connections to municipal services
- Electrical hook-up fees
- Site landscaping after the work
- Construction site insurance
- Taxes on materials and services
The fixed-price contract
A fixed price protects your budget. It costs more upfront than cost-plus.
Lenders prefer it: the total cost becomes predictable.
The budget lenders accept
It must be signed by a contractor, not drafted by you alone.
Comparing two bids
Two bids at the same price can cover different work.
Compare line by line, and ask what is excluded.
A low price often hides items pushed to later.
The budget you will actually track
Take the approved budget and track each line as work proceeds.
A gap caught early can still be fixed. Caught late, it is endured.
Update the table at each lender advance.
