It\u2019s a good starting point \u2014 but it\u2019s not yet a construction budget.<\/p>\n Between the amount you have in mind and the money actually available to build, there are several essential costs that are best understood from the outset: professional fees, permits, taxes, site management, and contingencies.<\/p>\n Let\u2019s take a closer look at what needs to be deducted \u2014 and, more importantly, what truly remains for your project.<\/p>\n When discussing a project budget, it is important to distinguish between the overall budget<\/strong>\u00a0and the construction cost<\/strong>.<\/p>\n Construction cost refers only to:<\/p>\n labour<\/p>\n<\/li>\n materials<\/p>\n<\/li>\n<\/ul>\n Most other budget items are calculated based on this amount. In other words, it is not the total budget that goes directly into building, but rather what remains after several essential deductions.<\/p>\n Architectural fees generally represent 8 to 10% of construction costs<\/strong>, depending on the project\u2019s complexity and the scope of services.<\/p>\n They typically include:<\/p>\n project design<\/p>\n<\/li>\n preparation of drawings and specifications<\/p>\n<\/li>\n regulatory and permitting processes<\/p>\n<\/li>\n coordination and, in some cases, construction oversight<\/p>\n<\/li>\n<\/ul>\n These fees are not an \u201cextra.\u201d They are what allow the project to exist \u2014 and to proceed smoothly.<\/p>\n<\/blockquote>\n Fees for other professionals must also be considered: designers, engineers, surveyors, and others.<\/p>\n In Montr\u00e9al, the cost of a building permit is approximately 1% of construction costs<\/strong>. Elsewhere in Qu\u00e9bec, this percentage is often slightly lower, but it varies depending on the municipality and the type of project.<\/p>\n It may seem minor, but it should be accounted for early in the process.<\/em><\/p>\n In Qu\u00e9bec, taxes (GST + QST) represent approximately 15%<\/strong>\u00a0on most construction work. They apply not only to construction costs, but also to professional fees.<\/p>\n This is often the most underestimated item in an initial budget \u2014 and yet, it is unavoidable.<\/p>\n Even with careful planning, every project involves a degree of uncertainty.<\/p>\n A contingency of 10 to 15% of construction costs<\/strong>\u00a0is recommended. This allows you to:<\/p>\n absorb hidden or unforeseen conditions<\/p>\n<\/li>\n respond to technical adjustments<\/p>\n<\/li>\n make informed decisions as the project evolves<\/p>\n<\/li>\n<\/ul>\n This reserve is not a margin for error, it is a management tool. <\/p>\n Planning for contingencies isn\u2019t pessimism \u2014 it\u2019s good judgment.<\/p>\n<\/blockquote>\n Beyond direct construction costs, the contractor must cover:<\/p>\n site management<\/p>\n<\/li>\n coordination of subcontractors<\/p>\n<\/li>\n administration<\/p>\n<\/li>\n insurance<\/p>\n<\/li>\n This category, which includes profit, generally represents about 15% of construction costs<\/strong>.<\/p>\n Let\u2019s look at a simple example.<\/p>\n Total client budget: $500,000<\/strong><\/p>\n If we add up typical percentages:<\/p>\n Architectural fees: ~10%<\/p>\n<\/li>\n Permit: ~1%<\/p>\n<\/li>\n Taxes: ~15%<\/p>\n<\/li>\n Contingencies: 10\u201315%<\/p>\n<\/li>\n Contractor overhead & profit: ~15%<\/p>\n<\/li>\n<\/ul>\n Approximately 50 to 55% of the total budget<\/strong>\u00a0does not go directly into labour and materials.<\/p>\n The result:<\/strong>From a $500,000 budget, there is often between $225,000 and $250,000<\/strong>\u00a0left for actual construction work.<\/p>\n Understanding the true structure of a budget makes it possible to:<\/p>\n avoid unpleasant surprises<\/p>\n<\/li>\n adjust the project early on<\/p>\n<\/li>\n prioritize intelligently<\/p>\n<\/li>\n design a realistic, coherent, and durable project<\/p>\n<\/li>\n<\/ul>\n A good project isn\u2019t the one that costs the most, it\u2019s the one that uses the right budget, in the right place.<\/strong><\/p>\n Before discussing square footage, materials, or aesthetics, it is essential to understand how a budget is structured. This understanding serves one purpose only: to design a project that is realistic, well thought out, and aligned with your means.<\/p>\n Every project is unique, and the same budget can lead to very different outcomes depending on context, site conditions, and objectives. If you would like to validate what your budget can realistically achieve, an initial conversation can help clarify the possibilities.<\/p>\n Schedule an exploratory meeting<\/strong><\/p>\n Or read some of other articles to help you clarify what you can really do with your<\/strong><\/u> <\/strong>budget<\/p>\n","protected":false},"excerpt":{"rendered":" Defining a budget is often the first step in a project. But how much of it actually goes into building? Fees, permits, taxes, contingencies, and management directly shape a project\u2019s scope. This article helps you understand the real structure of a construction budget to design a realistic and coherent project.<\/p>\n","protected":false},"author":3,"featured_media":2062,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-1526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-costs"],"acf":{"fibre_featured_article":true},"yoast_head":"\n![\"Reviewing](\"https:\/\/fibre.jfbwebmarketing.com\/wp-content\/uploads\/2026\/03\/fibre-budget-projet-20261029.webp\")
<\/figure>\nConstruction Costs: The Real Starting Point<\/h2>\n
\n
Professional Fees: Approximately 10%<\/h3>\n
\n
\n
Building Permit: Approximately 1%<\/h3>\n
Taxes: Approximately 15%<\/h3>\n
Contingencies: 10 to 15%<\/h3>\n
\n
\n
Contractor Overhead and Profit: Approximately 15%<\/h3>\n
\n
So\u2026 How Much Is Really Left to Build?<\/h2>\n
\n
\n
In Conclusion<\/h3>\n
What\u2019s Next?<\/h2>\n