The Budget Behind the Build: Lessons from a Completed Project

Over the last few years, in many of our projects, we have observed a rise in the financial stress of our clients during certain periods of the project. This was a common occurrence.

Recently, as one of our projects came to a close, our clients - the KT sisters - Rekha Utham and Renu Krishnadas shared with us a detailed record of their expenses from land purchase to finishing of their home. This inspired us to study the spending patterns more closely and identify trends that may be common across architectural projects.

Why Financial Awareness Matters in Construction?

At Elemental, we believe good architecture projects are not just about aesthetics and function it’s also about clarity. When clients are financially informed from the start, they’re able to make better design and material decisions without surprises down the line. As a consultant, the more clarity we are able to provide the client, the more their construction experience will be one of ease. Cost planning is not a secondary step; it’s foundational to the design process. This case study helped us reinforce that principle and gave us a real-world dataset to study and learn from.

Where Does the Budget Really Go?

While every project is unique, there are clear patterns in how a home’s budget typically gets allocated. As can be observed in Figure 1 below, by analyzing the percentage breakdown from the studied residential project, we discovered that just three categories alone: Civil Works, Interiors, and Furniture accounted for nearly 70% of the total budget.

The civil works mentioned include the construction of the substructure, superstructure, roofing, finishing of the walls, and site development works.

The Interiors mentioned includes the manufacture and installation of the kitchen units, inbuilt bay window seating, inbuilt wardrobes, bathroom shelves and glass partitions.

The furniture mentioned includes the sourcing and shipping of the indoor furniture, art, decor and decorative lamps.

Figure 1: Budget breakdown of one of our residential projects (2022–24).

What stood out was how interior-related expenses surpassed even some core construction components. While the shell of a house may look complete halfway through, the most significant spending often lies ahead.

This is why we have come to the conclusion of encouraging clients to visualize the budget as a timeline, not just a list. Understanding when certain expenses arise and what portion of the overall budget they command helps in making informed design decisions right from the start.

When Does the Spending Happen?

The project we studied spanned over 32 months, including both the design and construction stages.

As can be seen in figure 2 below, construction began in the 8th month.

Figure 2: Critical phases of construction - what tasks were carried out during the different months of our project

A key insight we uncovered was that expenditure is not evenly spread across the project timeline. In fact, the initial stages of land purchase, design, and civil works accounted for a relatively small fraction of total spend. It’s during the second half of the project that costs escalate sharply.

Here's how the spend typically flows over time:

This visual timeline showed that:

• Early stages feel slow in terms of cost, even as construction visibly progresses.

• Maximum expenditure spikes occur after structural works are completed, during interior finishes, and furniture purchases.

  
  

Looking at both the budget breakdown and timeline, one thing becomes clear: A home’s most expensive moments often arrive when it looks nearly done. This is when decisions feel fast, expectations are high, and budgets can stretch or snap.

But with the right visibility and planning, this phase can be empowering instead of overwhelming.

What We Learned

1. The Spike is Real and Predictable

Major costs in architecture don’t always show up when the work looks physically intense (like excavation or concrete work). Instead, the highest expenditure happens when the house appears almost done during interiors, furniture, and finishings. This spike can’t be eliminated, but it can be anticipated.

2. Awareness Changes Everything

Most clients are prepared for the early costs, drawings, approvals, and structure. But very few expect the intensity of decisions and spending in the last 3-4 months. By mapping spend across time, this blog hopes to build awareness, so future clients feel informed, not overwhelmed.

3. Budgets Should Be Timelined, Not Just Totaled

A single number, the budget, doesn’t capture the whole picture. What matters just as much is when that number breaks down over time. Cash flow planning is just as important as overall cost planning.

Building a home is never just a financial exercise; it's emotional, creative, and deeply personal. But it is still, at its core, a project. And like any project, visibility matters.

This blog is not about cutting costs or warning against spending, it's about understanding the rhythm of expenses and recognizing where and when the biggest decisions (and investments) happen. Because when you're aware of the shape of the journey, you're better prepared to walk it.

At Elemental, we’re continuously evolving how we communicate cost, time, and design, not just with drawings and schedules, but with tools like these that help our clients feel more in control and more connected to their homes as they take shape. As each project comes to a close, there is a lesson to be learnt. And we are committed to making these lessons our guidelines for our ways forward.