Budgeting & Value Engineering

THE MARIS METHODOLOGY:

THE FOUR COST BUCKETS

To avoid surprises, we break the total cost of relocation into four distinct categories:

1. Property Costs: These are the costs associated with acquiring the lease.
Rent deposits, stamp duty, legal fees, agent fees, and the first quarter’s rent and service charge.

2. Fit-Out & Design: The cost of transforming the empty shell into a workspace.
Partitioning, M&E (Mechanical and Electrical) modifications, flooring, joinery, furniture, and AV/IT hardware.

3. Professional Fees: The cost of the experts required to design and manage the process
Project management, design fees, planning applications, and “Licence to Alter” fees (paid to the landlord for permission to build).

4. The Move & Setup: The logistical cost of the physical transition.
IT migration (server crates), physical removal firms, temporary storage, and Dilapidations (the cost of repairing your old office).

THE CFO’S CORNER:

PROCUREMENT & VALUE ENGINEERING

Who buys what, and how, will shape both cost and quality.

Procurement Routes

• Traditional: You hire a designer, then tender the design to multiple builders. Good for price competition but slower and can lead to “scope gaps” between design and build.
• Design & Build (D&B): One partner handles both design and delivery. This is typically faster and offers a single point of accountability for the budget.

Value Engineering (VE)

True Value Engineering is not about cutting costs; it is about protecting value.

The Strategy: Prioritise the “High Touch” items. Spend on the chair, the coffee, and the IT speed. Save on the “Background” items like ceiling tiles or corridor flooring.

The Trap: Cutting corners on invisible elements like air quality or acoustics saves money now but costs productivity later.

MARIS TOOLS:

THE “BUDGET TRAP” RADAR

Watch out for these common hidden costs that often derail relocation budgets.

• Late Landlord Requirements: If the landlord delays approval or demands specific technical upgrades late in the day, it triggers premium overtime costs.
• Hidden IT Costs: Tech setups often escalate. Have you budgeted for the new server rack or just the cables?
• Dilapidations: Your old lease likely carries a costly obligation to strip out your current office. This can run into hundreds of thousands of pounds.
• Change Requests: Client-side changes mid build are the fastest way to inflate costs. Lock the design before construction starts.