Why this matters
For most tenants, the project budget is committed long before the design is complete.
The lease is signed, the incentive is agreed and the program is set — yet the true cost of delivering the workplace remains uncertain.
When cost clarity comes late in the process, it often results in redesign, compromised outcomes or additional capital that was never planned for. Achieving cost certainty before committing to a lease allows the project to begin with clear parameters and informed decision-making. The project budget is effectively set when the lease is signed — whether the real cost is known or not.
Where uncertainty comes from
Cost overruns are rarely caused by a single issue. They are typically the result of key project constraints being identified too late.
The most common are:
– Base building services capacity and infrastructure limitations
– Misalignment between the test fit and the available budget
– Program pressure created by lease commencement dates
– Scope gaps between consultant documentation and construction requirements
– Market procurement occurring after key design decisions have been made
Individually these risks are manageable. When discovered during construction, they become expensive.
Cost overruns are rarely a pricing problem — they are an information timing problem.
The common approach — and its limitations
In a traditional process, the workplace is designed to a high level of detail before a contractor is engaged. A construction price is then sought based on that completed design.
At this point there is limited flexibility to adjust:
– the program is fixed
– the design is advanced
– authority approvals may be in place
Any cost misalignment must be resolved through late-stage value engineering, often reducing quality or functionality. Late cost alignment forces design to change. Early cost alignment allows design to improve.
A structured pathway to early cost certainty
A more effective approach is to test cost, program and buildability in parallel with design development. This allows the project to be shaped within known commercial parameters rather than adjusted after they are exceeded.
Early engagement typically includes:
– Budget validation against the test fit
– Identification of base building and services constraints
– Program alignment with lease and authority timeframes
– Progressive cost planning as the design evolves
– Procurement input to reflect real market conditions
This creates a clear understanding of:
What the project will cost
What can be achieved within that budget
Where informed trade-offs may be required
Progressive cost planning shapes the solution — it does not cut it back.
The outcome
With early cost certainty:
Most importantly, the workplace that is delivered reflects the original brief — not a late-stage compromise.
Certainty allows the workplace to be delivered as intended — not redesigned under pressure.
Starting early
The most effective time to establish cost certainty is during lease negotiation or immediately following the development of the initial test fit.
At this stage the project still has flexibility, and informed decisions can be made without impacting program or design quality.
Cost certainty is not achieved by pricing a completed design — it is achieved by shaping the project within known parameters from the beginning.
Discuss your project
If you are considering a workplace relocation or refurbishment and would like early clarity around feasibility, budget and program, an initial conversation can help establish the right pathway forward.
