Domestic Projects - Budget Breakdown

Setting a budget for you project can be very difficult. With so many unknowns, big ideas and aspirations, knowing where to start can be a daunting thing. That’s why we have put together this quick guide to help our clients understand what their budget will need to cover. The guidance figures below give an indication of a typical project budget breakdown for a residential renovation project.

16% Consultant Fees

These are the fees for your design team including architect, structural engineer and party wall surveyor. For a specialist project you may require additional consultants or perhaps extra designers for that bespoke landscape or interior design.

40% Construction

This is what you will need to pay your contractor to build your project and should include, materials, labour, contractor overheads and profit. This will also include installation for your fittings and finishes. VAT is often quoted separately.

30% Fittings & Finishes

These are the costs for interior items which make a home a home. Items such as kitchens, flooring, bathroom fittings, patio doors etc. can vary significantly depending on personal taste but for the average specification you can expect to allocate around 30% of your total budget.

9% VAT

For most projects VAT at a rate of 20% will be payable on the construction price supplied by your contractor. There are certain exceptions such as for some conversions, new build or unoccupied properties where a reduced rate can be applied. More details can be found on the government website.

4% Contingency

With the best intentions one can attempt to budget for every item of their project, however unforeseen events can lead to budget shortfalls through additional expenses. We therefore recommend setting aside a minimum safety net of 10% of the construction cost. For riskier projects with large unknowns this should be higher.

1% Statutory Fees

Statutory fees cover the cost of necessary approvals such as planning approval and building control sign off. These are often non-negotiable but account for less than 1% of a typical budget.

*All figures are approximate and depend on project particulars, complexity and aspirations.