Budgeting & Financial Control

THE MARIS METHODOLOGY:

TOTAL PROJECT COSTING

At Maris, we do not provide “estimates”; we build cost plans. An estimate is a guess; a cost plan is a mathematical calculation of every component required to deliver the project.

To achieve true cost control, we break the budget down into three distinct “pots” that must be ring fenced early:

1. The Construction Pot (The Hard Costs):
This covers the physical build: partition walls, ceilings, flooring, mechanical & electrical (M&E) adaptions and joinery.

• The Maris Difference: We minimise the use of “Provisional Sums” (allowances for undefined work). We define the scope upfront so the price you see is the price you pay.

2. The FF&E and Tech Pot (The Agile Costs):
Furniture, Fixtures, Equipment and Audio-Visual tech often account for 30–40% of the total budget.

• The Trap: Many tenders exclude this to make the bid look cheaper. We include it. We also advise on where to spend (e.g., ergonomic task chairs) and where to save (e.g., storage lockers).

3. The Professional Pot (The Soft Costs):
This includes design fees, project management, statutory approvals (Building Control) and CDM coordination.

• The Integrated Advantage: Because Maris is a Design & Build firm, many of these fees are absorbed into the construction overhead, avoiding the “fee-on-fee” layering typical of traditional procurement.

The Fixed Price Commitment:

Once the detailed design is signed off, Maris offers a Fixed Price Lump Sum Contract. Because we are privately owned and debt-free, we have the financial stability to lock in supply chain costs early, insulating

THE CFO’S CORNER:

CONTROLLING THE PROGRAMME

If the initial cost plan exceeds the budget, the answer is not to cut quality; it is to apply Value Engineering (VE).

True VE is not about removing features; it is about achieving the same function for less cost.

Example: Specifying a “crittal” glass wall is expensive due to bespoke manufacturing. Switching to a faceted straight-glass wall creates a similar visual curve but uses standard, mass-produced panes, saving roughly 20% on glazing costs.

Capital Allowances (The Hidden Subsidy)

The most underutilised financial lever in fit-out is the UK tax regime. Under current HMRC rules (specifically “Full Expensing” introduced in 2023), companies can often claim 100% first-year tax relief on qualifying plant and machinery.

• What Qualifies: It is not just heavy machinery. In a fit-out, items like air conditioning, lighting, carpets, kitchens and moveable partition walls often qualify.
• The Impact: A £1 million fit-out might yield £600,000 in qualifying expenditure. At a 25% Corporation Tax rate, that is a £150,000 cash saving.

We work with capital allowance specialists to code our invoices correctly, making it easy for your finance team to claim this relief.

MARIS TOOLS:

THE “BUDGET BLINDSPOT” CHECKLIST

When reviewing a tender or setting your internal budget, check if the following items are included. These are the most common “hidden costs” that cause overruns.

• IT “Active” Equipment: The contract usually covers cabling (passive), but does it cover the switches, servers, and Wi-Fi access points?
• Acoustic Treatment: Is sound baffling included, or is it an “optional extra”? (Retrofitting acoustics costs 3x more).
• Window Blinds: Often excluded by landlords and contractors, yet essential for glare control.
• Access Control: Security passes, readers, and barrier integration.
• Out of Hours (OOH) Working: Does the building management require noisy works to be done at night? This attracts a labour premium.
• The “Make Good” on the Old Office: Have you budgeted for the dilapidations liability on the lease you are exiting?