Budgeting Guide for Your Residential Architecture Project

Budgeting is one of the most important and often misunderstood parts of starting a residential project. This guide breaks down how to estimate costs, understand constraints, and plan your design journey with clarity from the very first step.

There are two ways to approach budgeting a residential project. Most clients start with a vision and a rough idea of what they would like to spend on the project. This number is usually based on savings or the ability to qualify for a loan. If you don’t have a rough number in mind yet, start at the “understanding constraints” part of this document.

Project Budget – The Back-of-the-Envelope Way

In the early phases of the project, the first rough estimate comes from one way through square footage. Here is a table below that can be used:

New Build Cost Example Project
Style $ US per sqft Sq ft Approx. Budget
Medium 600 1500 900,000
Luxury 800 1500 1,200,000
Renovation Cost Example Project
Style $ US per sqft Sq ft Approx. Budget
Medium 350 1500 525,000
Luxury 500 1500 750,000

Feasibility Study

One of the services we offer to clients who want a more detailed cost analysis of their project is a feasibility study. As a part of this study, we create initial sketches of a few options of the proposed design and get initial rough pricing from our builder network. A feasibility study typically costs around $5000, but can vary depending on the size of your project. Schedule a call with us if you are interested in learning more about it.

Project Phases

A typical project goes through the following phases:

  1. Pre-design phase
  2. Schematic design phase (SD)
  3. Design development phase (DD)
  4. Bidding + value engineering phase (VE)
  5. Construction documents phase (CD)
  6. Construction admin phase (CA)

The feasibility study mentioned above combines elements from the pre-design and schematic design phases upfront for a fixed fee.

Understanding Constraints

While most people have a rough idea of what funds are available for them to spend on a project, it is okay if that is not the case for you. In such a case, we guide clients to understand other constraints they are working with. A way to create a constraint is using a programming questionnaire; in this way, we understand what your current needs are and how they are likely to expand in the future. We understand your likes and dislikes and what elements of biophilic design resonate with you. With this information in hand, we perform an initial feasibility study to present a few options and their associated rough budgets.

Our Fee Structure

We charge hourly per our contract and invoice bi-weekly. For most projects, our overall fee ends up being around 10% of construction costs. Each invoice comes with a timesheet of where the hours were spent, and each phase of work is concluded with key deliverables. The first step to getting started on your project is to book our complimentary 30-minute initial call, which accomplishes the following:

  • Understanding the vision for your project
  • How we can help you achieve your project goals
  • Our design process
  • Estimate the budget for your project
  • Explain our fee structure in more detail