How to Set a Realistic Budget for Your Project
Let’s be honest – talking about budgets isn’t the most exciting part of a project, but, it is one of the most important. Whether you’re planning a refurbishment, a new build or something more bespoke, getting your budget right from the start can save you time, stress and costly surprises.
Why budgeting feels tricky (and why it doesn’t have to)
Most people I speak to feel a bit unsure about what things should cost – and that’s completely normal. You’re not expected to know the ins and outs of construction pricing – but you are allowed to ask questions, be honest about your limits and expect clear guidance from your team.
When budget conversations are open and realistic, everything else flows more smoothly. A clear, honest budget helps your architect to design within your means, avoids disappointment later and gives you control over your choices.
Too often, I meet people who’ve set their sights on a Pinterest-perfect project… without knowing what it might cost. And that’s okay – you’re not expected to know. But, we know enough to guide you towards what would be achievable within your budget – so please ask, and listen.
Be honest about your budget – it helps everyone
It might feel awkward to talk money in that first meeting. Some clients worry that revealing their budget too early will limit their options, scare off potential collaborators or impact our fee. But really, being upfront helps us to help you.
When I know your budget from the start, I can:
* Provide you with an accurate service fee
* Design within your means
* Avoid wasted time and false expectations
* Offer creative alternatives that still meet your goals
* Flag early if your budget is unlikely to support your desired outcome
More often than not, when a client holds back on budget, we end up chasing a goal that simply isn’t feasible. That’s frustrating for everyone. So please – share your budget.
What does a realistic budget actually include?
It’s easy to focus on the visible parts of a project – the materials, the finishes, the final result. But there’s a lot more to consider.
Here’s a simple breakdown:
| Category | Approx. % of Total Budget |
|---|---|
| Professional fees (Architect, structural engineer, planning consultant, principal designer, etc) | 15-20% |
| Permissions and approvals (Planning and Building Regulation applications, surveys, party wall surveyor, ecology, etc) | 5-10% |
| Construction (Labour, materials, site setup) | 45-55% |
| Finishing touches (Fixtures, fittings, signage, landscaping, kitchens, bathrooms, etc) | 10-15% |
| VAT (20% is most typical) | 0-20% |
| Contingency (costs are high and unpredictable so 15-20% is a sensible buffer) | 15-20% |
Be honest about your budget – it helps everyone
There’s no such thing as a “wrong” budget. Whether you’re working with £50k or £500k, being upfront helps your team design and plan something that works for you. It avoids wasted time, disappointment and awkward conversations later.
If you’re not sure what your budget should be, ask yourself:
* What can I comfortably afford to spend?
* What’s my absolute ceiling?
* Do I have a buffer for surprises?
* Are there any price ceilings for my building in this region / will I get my money back when I sell?
There’s no shame in having a budget. In fact, it’s one of the most empowering things you can share with your architect. It helps us to tailor your design, suggest smart alternatives and avoid wasting time on ideas that won’t fly.
Design to your budget
It’s easy to fall in love with a grand design and then try to make the numbers fit – but, that’s often where things unravel. Instead, let your budget guide the design. A thoughtful team will find creative ways to make your space beautiful and achievable – but only if they know what you’re working with.
And, while we’re here: take what you see on TV shows like Grand Designs or in glossy magazines with a pinch of salt. The final budget figures often don’t tell the full story. Many of those homeowners take on huge portions of the work themselves – project managing, sourcing materials, even doing physical labour – which dramatically reduces costs. That’s not realistic for most clients, especially if you’re working full time or want a professionally managed build.
So, if you see a stunning project built for just £150k, ask yourself:
* Did they include professional fees?
* Was VAT accounted for?
* Who did the labour – and were they paid?
* Were contingency costs mentioned?
I don’t want to burst your bubble – this is about helping you to confidently plan, so that your dream project doesn’t become a financial headache.
Listen to your architect
We may not be financial advisors, but we do have a strong sense of what things cost – and more importantly, what causes costs to spiral. When clients keep adding features or changing direction mid-project, it’s often despite clear warnings that the budget is at risk.
If I flag a cost concern, it’s not to dampen your enthusiasm – it’s to help you avoid disappointment. Ignoring those warnings can lead to delays, redesigns or even having to shelve the project entirely.
So if your architect says, “This change will likely push us over budget,” it’s worth pausing and asking: Is this addition essential; is it something we can phase in later; or is it something that can be simplified to economise?
Stick to your budget (even when tempted)
Once you’ve set your budget, protect it. That means:
* Avoid mid-project changes unless absolutely necessary.
* Being realistic about upgrades – do you need the marble worktop?
* Trust your team when they flag cost risks.
When you’re open about your budget, you’re not just helping your team – you’re building a relationship based on trust. It allows us to guide you honestly, suggest smart alternatives and to help you get the most from your investment. More than anything, we want your project to be a success… allow us to help you.
If you’re planning a project and are feeling unsure about where to start with budgeting, I’d love to help.