How to Get Your Client to Set a Realistic Budget
Start as you mean to go on by establishing a realistic budget with your client right from the start of a project
Houzz AU
7 February 2018
It’s important to establish a client’s budget right from the start, to ensure you’re both on the same page and are working within the parameters of what the client can afford. Here’s how.
Bring up the budget at an early stage
If they’re reluctant to share information about their budget, try to reassure them that your aim is to make sure the project comes in on budget.
Dmitri Kozlov of Studio Urbo says: “The best approach is to give a detailed explanation of the role of budgets. We design according to a budget. If we don’t know the real figure, we can’t provide acceptable results.”
Factor in the price of contractors
Once you’ve got a preliminary sketch of the project, it’s a good idea to obtain early quotes for work that you’ll need to contract out. By factoring in all the costs you can present a more accurate budget to your client and make adjustments right at the beginning.
If they’re reluctant to share information about their budget, try to reassure them that your aim is to make sure the project comes in on budget.
Dmitri Kozlov of Studio Urbo says: “The best approach is to give a detailed explanation of the role of budgets. We design according to a budget. If we don’t know the real figure, we can’t provide acceptable results.”
Factor in the price of contractors
Once you’ve got a preliminary sketch of the project, it’s a good idea to obtain early quotes for work that you’ll need to contract out. By factoring in all the costs you can present a more accurate budget to your client and make adjustments right at the beginning.
Dmitri explains “The result won’t meet clients’ expectations. If the figure is lower than the client is willing to spend we will be coming up with solutions below expectations and the client will be unhappy. If the budget is lower than the construction cost, then our design won’t be possible to build and will be changed anyway at a later stage when it is harder and more expensive to do so, and the opportunity to come up with the best solution is lost.”
Draw up a wish list of supplementary items
Avoid unexpected surprises by asking your client for a wish list of items such as windows, fixtures, fittings and tiles. Perhaps they could put together an ideabook to share their preferences with you.
Draw up a wish list of supplementary items
Avoid unexpected surprises by asking your client for a wish list of items such as windows, fixtures, fittings and tiles. Perhaps they could put together an ideabook to share their preferences with you.
You’ll be able to see the kind of thing they like, and also work out what is in their budget and even what alternative items they could have instead, and how they could cut costs elsewhere to afford any must-haves.
Warwick O’Brien of Warwick O’Brien Architects says: “it is important to inform the client of other likely costs to completion, such as paving, landscaping, fences, rainwater tanks, solar panels and batteries.”
Warwick O’Brien of Warwick O’Brien Architects says: “it is important to inform the client of other likely costs to completion, such as paving, landscaping, fences, rainwater tanks, solar panels and batteries.”
Let your client guide the project
Give your client as much upfront information as possible, so that you can work together to get the ideal design at the right budget. By being transparent and making them feel that they have control over the cost of the project, there is an increased chance they’ll stick to the budget.
Warwick says “To move forward, we organize an initial meeting, where we talk through the project in details, answer questions, and explain our processes. We don’t issue any fee proposals without a prior meeting. The design process takes time and requires lots of collaboration with clients; we need to be sure that we can work with the client and their requirements are reasonable and thought through.”
Include a contingency fund
Stress to your client the importance of a budget for any unexpected work or materials. You never know what might come up, so this contingency money is crucial.
Give your client as much upfront information as possible, so that you can work together to get the ideal design at the right budget. By being transparent and making them feel that they have control over the cost of the project, there is an increased chance they’ll stick to the budget.
Warwick says “To move forward, we organize an initial meeting, where we talk through the project in details, answer questions, and explain our processes. We don’t issue any fee proposals without a prior meeting. The design process takes time and requires lots of collaboration with clients; we need to be sure that we can work with the client and their requirements are reasonable and thought through.”
Include a contingency fund
Stress to your client the importance of a budget for any unexpected work or materials. You never know what might come up, so this contingency money is crucial.
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We recommend to our clients to look closely at their own personal finance and equity in their property as an early question and we also recommend our design advice to anyone enquiring to our office so we can get to the bottom of people's real needs versus wants, explore design options and ideas and give some immediate building cost information. our design work as part of our standard service is always costed by a cost planning professional and we strongly recommend a competitive tender once full construction documentation drawings are done ( not just concepts). We have a resource on our own website just on this topic that everyone is welcome to download " keep your project under budget"
We have undergone 2 new custom home builds and a recent renovation. I have always had difficulty at the commencement of a project in setting or providing a budget estimate because I lack the knowledge of item costings. I have needed the advice of professionals to provide an approximation of costings after giving a detailed brief of our requirements and level of of finishes and fit-out we desired. Once we had the information we were then able to make decisions on whether we are able to finance the project as envisaged or whether we needed to reassess our plans. Having professional input also allowed us to contemplate the areas we could make some compromises to enable the project to be financed whilst still fulfilling our vision.
I have found this site incredibly useful as a tool in the early stages as I have been able to find guides for budgets in articles which are current and relative to my location.
I think that Jenny is spot on. The reason that clients can’t be ”upfront” about their budget is not a fear of ”spending it all”, but because we don’t know. We do this often once in a lifetime. Also, my budget is really ” as little as possible, and as much as necessary” to acheive what I want. Some people have absolutely fixed amounts based on how much they can borrow etc. Many of us can spend more, but that has a knock on effect in regards to when we can retire/ what holidays we can take/ what care we can buy etc. A more to and fro conversation and an education about how much times cost as proposed by Let’s Talk is much more useful