10 Simple Steps to Improve Your Office Fit Out Budget Before You Submit It for Board Approval

Preparing an office fit out budget is no small task. It is a critical document that will shape the success of your upcoming workplace project and can also have a big impact on your own personal reputation within the business. Having worked with Heads of Workplace, Real Estate, and Facilities at some of the world’s leading organisations, I know exactly how stressful and politically charged this process can be.

I am Steve Berridge, and I specialise in helping corporate real estate teams produce robust, board ready office fit out budgets that stand up to scrutiny and avoid costly surprises down the line. My mission is to help you navigate this complex landscape with confidence, ensuring your budgets are accurate, realistic, and trusted by your board.

I am passionate about supporting workplace leaders like you because I have seen firsthand the hidden pitfalls that come from poor early-stage budgeting. Missed approvals, delayed projects and cost overruns leading to damaged credibility with senior leadership. My goal is to help you avoid those outcomes and give your project the strong financial foundation it deserves.

Before you submit your budget for board approval, here are 10 simple yet powerful actions you can take to improve it.

1. Expand you cost headings

One of the easiest ways to make your budget more transparent and credible is to break it down into more detailed headings. Aim for at least 10 primary headings covering key cost areas such as Construction, Furniture, AV and IT, Professional Fees, Move Costs, Contingencies and so on. The more granular your budget, the easier it is for decision makers to understand where the money is going and for you to defend each line item if challenged. (It will also help you down the line to report against certain line items and isolate problem areas).

2. Check your formulas

It sounds obvious, but arithmetic errors can and do slip through. A small mistake in a formula can throw your entire budget out and significantly reduce the boards confidence in your ability to manage this process. Before you submit, audit your numbers carefully. Better still, have someone else review the calculations independently to catch anything you might have missed. It happens to all of us!

3. Get Early Input (and Buy In) from IT and Other Business Leaders

This budgeting task should fall on your shoulders alone, it should be a team effort. Budget allowance approved will have significant implications for technology infrastructure, business operations, and cultural transformation. Engage your IT department and other critical business heads early. Their input will help you build a more comprehensive budget that accounts for technology upgrades, specialist equipment, and operational considerations you might otherwise overlook.

4. Present Your Draft Budget to a Senior Team for Scrutiny

Before you take your budget to the board, present it to a cross functional group of business heads for feedback. This internal review process often uncovers blind spots, challenges assumptions, and surfaces critical factors that can improve the quality of your submission. It also builds a sense of shared ownership, making it more likely your budget will be supported when it reaches the boardroom.

5. Prepare a List of 10 Key Assumptions and 10 Exclusions

A budget is only as good as it’s it basis, assumptions and exclusions. A simple appendix outlining at least 10 key assumptions such as “No major structural works required” and 10 exclusions such as “Legals fees”. This transparency will help manage expectations and protect you from future challenges when new costs arise.

6. Clarify Which Items Are Opex or Business as Usual

Not every item related to the office move or fit out should sit within your capital expenditure budget. Create a separate list of costs that fall under operational expenditure or business as usual spend. Consider these discussion points for your CFO, where would they like the costs allocated? If they would rather they were a ‘capital’ cost, that’s fine, we can add them into your budget.

7. Include a 10% Contingency and 4% per year Construction Inflation

It is rare for a fit-out project to proceed without any changes or unforeseen costs. Consider adding in two separate contingencies, 5% for design stage (cover activities up to construction) and a separate 5% construction contingence to cover the unknowns the occur during the build. Depending on how early you are seeking budget sign-off, you should also, account for construction inflation, typically around 4%* per year to ensure your budget reflects realistic future tender pricing. (*Subject to change depending on when you read this article!)

8. Considering a Feature Staircase? Budget for It Now

If there is even a remote chance that your project will include high impact architectural features like a staircase, get it in your budget from day one. Adding a separate line item of £250,000 per staircase will keep you options down the line, you can also remove it and ‘give back’ the budget during the early design stages of the project.

9. If You Are Seeking Market Advice, Use a Simple NDA

Early advice from contractors, suppliers, and consultants can be invaluable. But remember, even informal conversations can involve sensitive information. Protect your organisation by using a simple Non Disclosure Agreement (NDA) when engaging with external parties. This keeps discussions professional and safeguards any confidential business details shared. This will hopefully reduce the endless phone calls from interested contractors in the months to follow.

10. Engage a Specialist Cost Consultant

If you are serious about getting your budget right the first time, there is no substitute for professional expertise. A specialist cost consultant can help you navigate every step of the process from initial cost planning to market testing and stakeholder presentations. Their involvement not only strengthens your budget but also adds weight to your submission when it reaches the board. Let us take on the burden of preparing your budget.

IS YOUR BUDGET REALLY BOARD READY?

If you have already prepared your budget and are wondering whether it is ready for board approval, why not take my free Budget Readiness Scorecard? In just a few minutes, you will get a clear picture of where your budget stands and what you might need to refine before presenting it to senior leadership.