3 tips for staying on-budget during your property development
Whether you’re looking to get started on your first project, or you’re an established developer wanting to increase the profitability of your developments, never underestimate the importance of staying on track with your budget.
Even the most experienced property developers will be learning with each and every project, with many lessons to be learned along the way when it comes to making the best financial decisions to get the development off the ground. Conducting relevant research into the financial feasibility of your development will help you to mitigate risks later on and provide you with the foundations for a good return on investment.
- Don’t fail to plan
Otherwise you’ll plan to fail. Creating an effective and well thought out plan is a key part of managing your development and how each part of your budget will be used. From the design work of the architects to the installation of the timber frames, every element of your development should include an allocated part of the budget. This process is just as important as the construction phase so it is vital that the time is taken to map these areas out thoroughly..
- And don’t forget to check the plan
Your budget plan is not a one-and-done process which will even out by itself at the end of the build, it is something that needs to be meticulously checked and monitored throughout the entirety of the project. At each stage of the development, ensure that you are seeking figures and guidance with regards to how the budget is being spent. Deadlines may change, designers might suggest adjustments and materials may simply never arrive, so your financial plans need to adjust accordingly.
- Identify possible risks and add a contingency
A project will never be smooth sailing from start to finish, so it’s important to include a contingency to cover any added costs that may arise during the build. No matter how many delays you may have already accounted for, what matters the most is that you have accounted for SOME delays and potential risks to your development completing within the desired budget. Generally contingencies aren’t spent entirely on one mis-hap, they cover the gradual increase in prices as unforeseen circumstances develop throughout the course of the build.
Use Oakworth Timber Engineering for your next construction project
We are a family business with a great reputation and an unwavering appetite to ‘do it right’. Whether we are providing bespoke self-build homes or high volume timber frames for apartment blocks, our team of passionate industry professionals work hard to deliver every project to the exacting standards Oakworth has become renowned for.
Our team of trusted advisers offer sound and reliable advice and can provide a tailored mix of services to fit your needs. Get in touch with us today, email sales@oakworthte.co.uk for more details.
