[VIDEO]

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One of the biggest and most jarring question homeowners have about their project is about their budget. And one of the biggest mistakes I see homeowners make is not talking openly about it with their Architect/ural Designer or General Contractor (GC) / Project Manager (PM) aka. Design & Build Team. 

I always ask prospective clients what their budget is. 

The reason for this is to understand what we have to work with, so we, as Architects and Architectural Designers can fine-tune a strategy for your project. From there we can gauge the overall project scope and the level of finish. And honestly, whether your project will meet your overall expectation. 

Without a budget, our job is 10x harder, resulting in longer design times and likely a redesign should the budget exceed expectations. More than that, most projects just cease to exist.

But how homeowners usually respond is either, "I don't have a budget." or "I don't know because I don't know what things cost."

If you answered or will answer with an actual number, well done. You can skip this lesson.

But if you used or plan to use either one of those responses, then we need to talk.

The "I don't have a budget."

This one is simple. Yes, you do have a budget. Everyone does. There is always a cap to what someone will spend. Where would you like yours to be? Generally if I get this response, I don’t work with the client. Here’s why. And that goes into my next point.

The "I don't know because I don't know what things cost."

In this case you are confusing 'budget' with 'cost'. 

COST is the dollar figure associated with the actual purchase of materials and labor. Sadly, it doesn't care what your budget is. For example, a haircut costs $50 whether you have the money for it or not.

Your design team is not asking what your project is going to cost you. No one knows that at this stage. What they’re asking is how much money you have to spend on the project.

BUDGET is the amount of money or dollar figure you’re able to spend on the overall project. It’s a planned amount based on your financial situation. For example, you have $150k saved up for a renovation, or you have access to a $500k construction loan, then that's what you can spend. 

Your budget will lead the design of your new home or renovation. By comparing that amount to your Wishlist, your design and build team can usually tell you whether your budget will likely cover the costs of that list or not.

If you’re embarrassed that you might not have enough money or say an unrealistic number - That’s O.K. This isn't a test. They do not expect you to know the current cost of construction. 

If you fear your design or your build team will spend it all, then you probably shouldn’t be hiring them. Or, if it’s not them, you may want to rethink the entire project. 

This is where trust and long term relationships really matter. There's nothing wrong with holding your cards close to your chest, but hiding them from the very people who are there to help you meet those numbers is foolish. The better they understand your budget goals, the better job they can do to keep you on budget and realistic with the outcome. Because most projects exceed their budget or fall short of expectations.

So when both your design and build team ask you what your budget is, don't worry what the costs are - that's what your team is here for - instead be straightforward with the amount of money you can or are willing to spend on this project for an easier project experience and better results.