Following on a discussion about the budget where Kevin’s numbers were higher than I expected, so he sent me a “line-item” budget with the revised numbers.For the whole project, including land but not taxes. The new figure is 12% higher than the high end of the original range.
The biggest changes came in three places, all of which make sense:
- The largest unfavorable variance is in professional fees. I had assumed that these were included in the total, but it’s possible they were supposed to be an addition. They total 7% of the budget.
- The build cost of the project is also higher, by 4%. I expected an increase in this number when I found out the house turned out to be 205m2 rather than 190m2.
- Finally, because the professional fees (taxed at 22%) and the build cost (taxed at 10%) are higher, taxes also increased.
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