04 Scheduling and Budgeting
Construction is a long-lasting investment that succeeds when the building quality matches the design intent, and because architecture makes a lasting mark on our world, this could be judged over decades, or even centuries. Balancing financial investment, time, and quality therefore becomes complex. Schedule and budget will have relative value ranges given the place, time, and type of your project. The project definition process will determine what points in this value range are appropriate for your circumstances. As a general rule, however, it is the lasting architecture and experience that endure over time, so building quality is perhaps the best overall benchmark for success.
Time pressure is personal; the definition of ‘as soon as possible’ is unique to an individual’s situation. People can be so pressured to complete a project that it’s more important to them than the cost of the project or its quality. Conversely, others are not pressured by time at all. It is not uncommon for construction times to stretch – some even double or triple in length. Project schedules can also be dictated by formalities from AHJs, inspectors, or suppliers. These parties can add considerable time because of their pressures – often without any recourse. Depending on your location, some AHJs may issue building permits, for example, in weeks, maybe even days, while some may take a year or more. All this will need to be considered in an early discussion with your architect to understand the time required for these aspects. It is important the schedule is viewed as a living document that can be revised and iterated during the project.
As a general rule, however, it is the lasting architecture and experience that endure over time, so building quality is perhaps the best overall benchmark for success.”
Any introduction to the finances of your project should begin with an understanding of the difference between hard and soft costs. Hard costs are direct construction costs for the project. This covers all the general contractor and subcontractor work. Hard costs are the materials and labor. Soft costs are the rest: architect’s fees, other design professional costs, real estate, finance costs, permit costs, printing, travel, and so on. The general contractor’s profit, overhead, and management fees are also considered soft costs.
The financial structuring begins with the planning and design portions of the project. This often happens many months prior to construction starting. Conversations regarding finance strategies should happen during the initial consultation meetings with potential architects. Your lender may require a building permit, a formal project cost estimate, and a signed contract with your general contractor to allow a loan to close and begin drawing on it. This means pre-construction soft costs will need to be funded from elsewhere. The architect will, naturally, need to cover their overhead and costs so will typically want to invoice monthly. Reaching a satisfactory agreement to keep all sides happy allows the process to move seamlessly in its early phases.
Architecturally, the focus is always on design with the intent to achieve a new client-specific experience, while considering level of fit and finish for durability at a reasonable cost.”
Our North American mentality seems to focus intently on costs, often before any thought has gone into the design process and establishing a project’s overall goals and objectives. The experience of those who live, work, or spend time in the resulting project is surely more important than complaining over dollars. In reality, however, everything is related. Of course, we all want everything all at once, and at the lowest possible cost, but each project will have a unique mixture of ingredients. Cost, design, and experience exist together, but they will vary in different ratios with a specific focus from project to project. Architecturally, the focus is always on design with the intent to achieve a new client-specific experience, while considering level of fit and finish for durability at a reasonable cost. These factors often pull the project in opposing directions that need to be defined and reconciled with your architect before thinking about your budget. That’s not to say the budget isn’t important, but putting it first can miss the point of the experience that well-considered and designed architecture will deliver. If finding the lowest cost is truly the primary objective, it is best to be transparent about your motivations and accept that some design professionals will struggle to find the right fit for your project.
