Construction budgets fail for predictable reasons. Understanding them before design begins is the cheapest form of risk management available to a client.
The rate per square metre trap
A rate per square metre is useful for early sanity checks and dangerous for decision-making. It flattens differences in specification, site conditions, programme and procurement route that can move final cost by 30% or more.
What actually moves the number
- Specification creep. Small finish upgrades compound across thousands of square metres.
- Programme. Longer programmes carry more overhead, escalation and financing cost.
- Site conditions. Poor ground, restricted access or live utilities can add significant preliminaries.
- Currency exposure. Imported finishes, glazing and equipment reprice with exchange rates.
- Design completeness. Every unresolved detail becomes a variation later, usually at a premium.
Build a live cost plan
We recommend a measured cost plan at concept stage, updated at every design milestone and reconciled against tenders. It should show allowances, risks and escalation separately, so decisions are made with eyes open.
Contingency is not waste
A sensible contingency is a tool for making calm decisions. Removing it to hit a target price simply moves the risk to the middle of construction, when it is most expensive to solve.
