Starting a construction project without a realistic cost estimate is one of the worst mistakes an Owner can make. I have seen countless projects doomed for failure because the Owner’s vision was greater than their budget.
This does note need to be so!
In my newest article “Why you need a budget“, I discuss the differences between a budget and a spending limit and the three things and Owner can do if their vision exceeds what they can afford.
Here is an excerpt from the article:
So you have decided to take on a construction project. You have a clear vision of what you want and you have a dollar limit in mind for the work. Are you ready to move to the next level?
If the dollar limit you have for your project is not based on a construction cost estimate the answer is no!
It is important to note that a construction cost estimate and a spending limit are not necessarily the same.
Your budget should not be based simply on how much money you have available. Your budget should be based on a well-developed estimate that meets the scope of work you want.