The Building Project That'll Ruin You Financially

um today we're talking about project feasibility is your project financially viable like but i think the first thing that i have home is budget does not like your budget is not your bill cost

Yeah, look, I mean, Dwayne Pearce talks about that actually a lot.

Yeah, yeah, yeah.

He talks about so there's the

budget to actually build

the physical home and then there's all the other shit.

And to use a term that Brad uses, all the other nonsense that's around that.

which costs a shitload of money.

So you might say I've got $1.5 million to build and you go, right, where's the other $150,000 coming from that's going to get you to a point where you can actually start building a home? So that needs to be put into the mix as well.

But so as an answer to the question of like when we have a client come to us and we get an amount of money or we say in our pre-con process this is what we want to spend and you look at a plan and we spoke about in the first episode of the pre-construction series where a builder said, oh, I think that 900 and you looked and it was like 1.6. Well, the

client.

Yeah.

So this is the other thing that you need to manage as well because the client has a budget and then there's the design and then there's the reality of do those things actually make sense.

And from our side of things, that's our feasibility process is actually to work out whether or not the bucket of money you want to spend matches the design.

And I think the quicker you can actually find that out, the better for everybody.

Because if the client's got $900,000 and you know in your mind The moment you see those plans, there's 1.5. There's no point telling them in six months time.

You need to tell them like within 30 seconds of seeing them.

And as we

spoke about, clients aren't meant to know what it costs.

I also feel sorry for architects and building designers where they get given a budget.

They also get given a brief and they've got to try to match the two knowing that they're not going to match.

And I think that's probably a really hard starting point to defend them.

I know we always shit can and joke about architects blowing the budget, but like we put ourselves in their shoes for two minutes.

Like it's quite difficult.

Yeah.