What common budgeting mistakes do you need to avoid in commercial interiors?

2 Not doing enough research

Making a mistake in budgeting can be costly, but it can be avoided with research. Researching the market, site, materials, and suppliers is essential for creating an accurate budget that reflects current conditions and trends in the industry. Without research, you may end up with outdated or inaccurate information that can lead to overestimating or underestimating the costs. To ensure you don't make this mistake, you should conduct thorough and ongoing research on the following aspects. The market should be researched to understand the expectations and preferences of your target audience and clients, as well as any potential challenges. Researching the site is important to identify existing conditions, limitations, and requirements of the space. Researching materials will help you select the best materials for your design vision, budget, and timeline. Lastly, researching suppliers will help you find reliable ones that offer the best prices and services for the materials and products you need.

3 Not communicating effectively

A third common budgeting mistake is not communicating effectively with your client, your team, and your suppliers. Communication is key for ensuring that everyone involved in the project is on the same page and that there are no misunderstandings, misalignments, or mistakes that can affect the budget. Without effective communication, you can end up with unrealistic expectations, unmet needs, or unresolved issues that can lead to dissatisfaction, disputes, or delays. To avoid this mistake, you should communicate frequently, clearly, and honestly with your stakeholders. You should also use the appropriate tools, methods, and formats to communicate the budget and the progress of the project, such as spreadsheets, charts, reports, and presentations.

5 Not adding a contingency

A fifth common budgeting mistake is not adding a contingency to the budget. A contingency is a percentage of the total budget that is reserved for unexpected or unforeseen costs that may occur during the project. These costs can be caused by factors such as delays, errors, changes, damages, or emergencies. Without a contingency, you can end up with a budget shortfall, which can jeopardize the completion, quality, or functionality of the project. To avoid this mistake, you should add a contingency of at least 10% to 15% of the total budget, depending on the complexity, risk, and uncertainty of the project. You should also use the contingency wisely and only for necessary and justified costs.

6 Not reviewing and revising the budget

A sixth common budgeting mistake is not reviewing and revising the budget at the end of the project. Reviewing and revising the budget is important for evaluating the performance, outcome, and profitability of the project. It can also help you identify the strengths, weaknesses, and areas of improvement in your budgeting process and skills. Without reviewing and revising the budget, you can miss out on valuable insights, feedback, and lessons that can help you improve your future projects and avoid repeating the same mistakes. To avoid this mistake, you should review and revise the budget after the project is completed and compare it with the initial and actual figures. You should also document and report the results and findings of the review and revision, as well as the recommendations and actions for improvement.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?