You should hold back 10 to 15% of your total project budget as a contingency buffer. This ensures that unexpected surprises do not become crises during the fitout process.
A contingency budget is distinct from the construction cost and covers items not identified in the initial scope. It acts as a financial safety net for the entire project duration.
What does a contingency buffer cover?
The buffer covers unplanned items such as unforeseen building service issues or late changes to the brief. It prevents budget blowouts when hidden site conditions are discovered after construction starts. This is critical because there is almost always a requirement that was not captured in the initial quote.
How to allocate budget across the space
Focus your budget on high-traffic areas such as reception and meeting rooms to maximise the impact on clients. Back-of-house storage and utility rooms can be completed to a basic standard. This approach reduces waste while maintaining a high-end feel in the areas that matter most.
Common costs that miss the initial budget
Budget for costs that often do not appear in a fitout quote, such as IT equipment, servers, and internal wayfinding signage. Relocation costs and temporary accommodation for your team during construction also need to be factored in. These expenses are part of the total project budget rather than the construction cost.
Managing budget risks and specifications
A basic commercial fitout may cost between $500 to $1,000 per square metre, while premium specs can exceed $4,500 per square metre. The wider the range, the more critical a precise brief becomes to avoid costly variations. A well-planned fitout done by an experienced local contractor almost always costs less than a rushed project.
The value of early specialist intervention
Engage a fitout specialist before signing a lease to spot old building services that need replacing. This prevents you from committing to a space with hidden compliance issues that would deplete your contingency. Progressive Corporate’s design team helps clients understand the real cost of a space before they sign.
Frequently asked questions
What happens if I do not have a contingency?
Without a buffer, any variation or unexpected site issue can derail the project timeline and budget. You may be forced to cut quality in other areas to cover the gap.
How can I reduce overall fitout costs?
Buy modular furniture and purchase direct from manufacturers to remove middleman markups. Reusing existing desks or chairs in good condition also lowers the total spend.
Does the fitout quote include everything?
Not always. You must verify if the quote includes labour, furniture, and installation to avoid hidden costs.
Questions to ask your fitout company before you sign
- What exactly is included in the quote regarding labour, furniture, and installation?
- Are there any old building services in this specific space that likely need replacing?
- Can this project be delivered in stages to spread the cost over time?