The art of budgeting: navigating building costs with confidence

For many people, building a home is the most expensive thing they will ever do. For some, poor budgeting means the build costs thousands more than it needs to. With material cost fluctuations, unexpected obstacles, and changing plans all common occurrences during a building project, it’s important to engage the right professionals to ensure your investment is protected.

With over three decades at the helm of DJ Hewitt Builders, Daryl Hewitt has seen, time and again, how crucial budget clarity is to the success of a project. We sat down with him to learn more about the art of budgeting for a building project.

Bringing your builder on-board at the beginning of a project is the best way to ensure the build runs smoothly, Daryl says.

“It’s important to get a builder involved to do budgets early so the client doesn't spend their money getting all the plans done, and then find out it’s going to be a lot more expensive than what they had expected. 

“When a client starts their project with us, we can help them with things like choosing a section, and doing due diligence on that section to make sure that it's going to be in their budget. Once they have the budget sorted, the build should be enjoyable and easy,” Daryl explains.

Clients can hit budget problems early in the process if they’re not working with the right architect or designer for their home. While you may dream of working with a high-end architect, Daryl says it’s important to be realistic about what you can afford. To ensure his clients have a great team on board for their project, Daryl will recommend an architect or designer suited to the project goal. 

“We have a substantial network of different people who specialise in certain types of projects, some are great at renovations, others specialise in thermally-efficient homes. I try to match a client to a designer or architect depending on what the wishlist is, and what their budget is.”

Budget clarity is not only important for the client-builder relationship, but also for the client’s relationship with the architect. Daryl says people often have reservations about discussing their budget, but clear communication is vital when working as a team.

“That open relationship is crucial, so we’re always at the meetings with the client and the designer, or the client and the engineer, to make sure everyone is on the same page with where the project is going,” Daryl says. 

The goal for these meetings is to balance the client’s needs with their wish list, and come up with a solution that fulfills both. 

“A designer might have a great idea, but it could end up adding a lot of money to the build. One line on a plan could cost a client $15,000, which might not fit their budget,” Daryl explains. “So we can pipe up at the meeting and try to guide them along the way.”

Every building project comes with unexpected challenges, but with clear communication and an experienced team, it’s possible to reduce the risk of issues that blow the budget. 

“Hidden costs often arise when we start excavation — you might hit rock, soft ground, or the remains of a previous build. We do geotechnical reports on every site these days, but you don't really know until you’re digging the hole, because you're only testing certain points during geotechnical testing, not the whole site. 

“We mitigate as much as possible, but it all comes down to working with a good engineer who understands the budget. We always recommend people allow a little bit of a buffer in the budget to solve any issues with ground conditions.”

Renovations require the same approach as, Daryl explains, you don’t always have a clear picture of what the house has been through.

“You have to go in with a bit of an open mind, because you're going to get some surprises coming up. We’re solution-based, so when we find issues with alterations, we aim to find a cost-effective solution to sort it out.”

A good relationship between you, your architect, and your builder not only ensures the success of the project, but means you’re able to relax and enjoy the process.

“Building is a long process, from the documentation to the end of the build, so you need to be able to get on with your builder and designer, be on the same page, relate well together, and trust each other,” Daryl says.

“For us, it's all about making the client’s dollar go a long way, achieving amazing architecture, and building a house that's going to perform well. We’ve had some great clients over the years — some that we’ve even become friends with, and enjoy catching up with to this day.” 

Learn more about DJ Hewitt Builders.