Budgeting for Your Whole Project: What Nobody Puts in the Pro Forma

A lot of first-time operators think they have enough money for their build-out right until about three weeks before opening.

That’s usually the moment the invisible costs start appearing: permit fees, utility upgrades, consultant invoices, equipment coordination, contractor exclusions, change orders.

A GC bid is not a project budget.

If you only include the obvious numbers in your pro forma, you’re setting yourself up for a stressful scramble right before opening day. A realistic project budget accounts for the full picture.

The Myth of the Standard 10% Contingency

Every project needs a contingency fund for unforeseen field conditions. The industry standard is 10% of the construction cost, and it’s tempting to leave it there to keep the spreadsheet looking clean.

But if you’re building a restaurant, a complex high-end retail space, or adapting an older historic building, a 10% contingency is a gamble. A realistic buffer for these project types is often closer to 15% to 20%.

Remember: an underfunded contingency doesn’t prevent problems from showing up, it just forces you to make panicked design compromises mid-construction. Keep in mind that this fund is strictly for construction surprises—not for professional fees or city permits.

Beyond the GC’s Bid

Many founders are surprised to learn that a contractor’s bid rarely includes 100% of the architect’s drawings. GCs routinely include an “Exclusions” page at the back of their proposal.

Common line items that drop out of a standard bid include:

• Exterior signage and complex digital menu boards often require separate proprietary contractors

• Specialized kitchen, espresso, or POS systems may require additional hookup, calibration, or testing coordination

• Some landlords require ground-penetrating radar before demo or specific landlord subcontractors for certain types of work

• Some cities require materials testing or independent ADA inspections

Reviewing the exclusions page with your architect before you sign the construction contract helps you assign a real dollar value to those gaps.

The Cost of Permission

Securing permission to build costs money before a single hammer is swung. Between city plan checks, building permits, utility connection fees, and hiring a local expeditor to push paperwork through city hall, you can easily spend $15,000-$50,000+ depending on your market.

The good news? These aren’t wild guesses. A few early calls to the local building department by your design team can give you exact figures to plug into your pro forma on day one.

Professional Fees and the Cost of “Pivoting”

Architectural and engineering fees can represent 20% to 35% of the construction cost, with the percentage skewing higher on smaller, highly customized spaces.

These numbers assume a linear path from concept to completion. But the most hidden cost in a project is the cost of changing direction.

Changing your mind mid-project—swapping out a material, altering a layout, or adding a fixture during construction—feels harmless, but even small changes tend to ripple outward. A single revision can require updated drawings, consultant coordination, contractor change orders, or additional city review. Even a change meant to save money can end up increasing costs once delays and administrative time are factored in.

On one ice cream concept, for example, the operator found a great deal on a used walk-in freezer after the drawings had already been permitted. The unit was slightly larger than the one originally specified, which meant shifting a plumbing wall to make it fit. That change then affected the architectural and MEP drawings and required another round of review with both the city and the health department.

None of this made the project unworkable. But it did add time, coordination, and cost that could have been avoided with an earlier decision.

The kindest thing you can do for your budget is make your major decisions during the design phase and lock them in.

The Reality Check

A realistic budget protects your momentum and gives you peace of mind.

The more honestly you account for the full cost of getting open, the fewer surprises you’ll face when the pressure is highest.

Planning a new space and want a second set of eyes on your budget? We help brands understand the full picture before construction begins.

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