Your dream house Budget

This is a critical area to be decided before you start Construction.

I would like to address the topic with two terms "Project Budget " and " Personal Budget".

PROJECT BUDGET : 

Every project demands a budget irrespective of how much we can spend. It depends  on various factors like size, design, finish quality, location, accessibility etc.. and lot more factors can decide the Project Budget.

PERSONAL BUDGET : 

Everyone will have a budget with respect to their financial stability and commitment. Usually personal savings, loan from family, friends, financial institution are the source in India. In such situations we have to plan accordingly to run the project and complete it without any delay to avoid additional cost during the time and we should be in a situation to satisfy other commitments without any stress. 

Let's get into some detail, when a person decides to start his dream home he or she must work on the budget with utmost care. When you start the project without planning the budget possibilities are very high that you will suffer a lot to complete. To avoid such chaos following considerations and calculations will help you to arrive at your Budget.

1.  In general you know your financial capacity, plan a safe budget based on that.
2. For instance let's say you start your project work, you have got a quote from a contractor before even completing your floor plan, structural design and elevation and you are satisfied with the rate and specifications but when you get the actual estimation for the design and finish of your taste, possibility of getting a different quote is high, if it's on the lower side you are safe on the other hand it can bite your hand. Forcing you to redesign or compromise with finish and quality. So please do the basic ground work like prevailing rates for all kinds of finishes and evaluate your self to make the approximate budget you are afford to decide the size and finish indirectly, and convey the same to Architect to design accordingly.
3. During the course of execution sudden hike in material or labor cost will increase the project cost, in such circumstances you cant stop the work if its half way through. To handle such situation we have to allocate buffer amount at the start.
4. Many of us have a tendency to add things on the go, best example in residential construction is interior decoration works. Most of the time we forget to decide at the start, later we get attracted when we visit some ones house or any place, for such things we have to decide at the start to accomodate within planned budget.
5. Improper documentation of scope, quality and quantity with contractor. Since the sector is highly unorganized there is plenty of bitter experience between Client & Contractor. At worst cases this will destroy your dream or unsatisfied dream.
   In India due to budget constrains people tend to choose non-professional contractors, in such cases agreement are signed between parties without much details regarding scope, finish, quality and time related topics. In such cases contractors tend to charge extra for items and they would have not informed that these things would attract extra cost. And when there is any change or addition in scope, proper documentation will not be done and the contractor would claim without any proper base calculation or split up. Apart from this people choose who quotes the least most of the time, such contractors wont give any written document to guarantee the same and they may even claim extra even if there is not change in scope.
   Such situation is very common in India, to avoid such disputes make sure you record each and every aspect of scope at the start and discuss each individual points in detail to avoid additional burden and  conflict at end.
6. There are many other things which can make change to the budget.
   
   • Change in material quality (Cement, tile, wood, paint, grill, doors, electrical, plumbing, sanitary etc.).
   • Addition or change in scope of any kind of work depending upon the time at which the scope is added or changed.
   • And always have additional budget for meeting unexpected expenditure.
    

Make sure you work with clear idea in all angles to execute your dream home in peace.