The Owner can

• Prioritize their needs and desires. Make a list of what is most important. When cost information comes in, the bottom line of the budget is drawn through this list. Whatever is above the line is a go; those falling below are out. The only ways to change this reality are to shift the order of the priorities, drop the quality, shop for a lower price, or expand the budget.
  
• Purchase a site with lower costs. A steep hillside or remote site may have significant development costs. Some sites may require lengthy permitting processes. The cost of a view site may not allow enough of the remaining budget for the desired house.
  
• Make friends with compromise. If the main living space is the highest priority, perhaps the bedrooms can be smaller, or the bathroom can be shared. The hardwood flooring may have to wait. Take a look at other cultures; most of the world lives comfortably with much less.
  
• Live informally. Living and dining rooms that are used only to entertain guests cost a lot to build and heat/cool.
  
• Put off building it all. Select some areas to phase in or add on easily at a later date.
  
• Develop a trusting relationship with the contractor. With a mutual trust.
  
• Keep communications frequent and clear. Misunderstandings can happen easily and lead to costly errors; stay in close touch with the key members of the team.
  
• Shop smart. Know what you need beforehand so that you can take advantage of sales—however, be aware of the costs of storage and the potential for weather damage. Don't wait to the last minute to buy something; you'll pay dearly for rush orders, let alone holding up a line of subcontractors. If possible, arrange with the contractor to pay for materials directly without the additional costs of overhead.
  
• Reward the Contractor for money saved. This is a great way to encourage teamwork; it's a win-win situation.
  

The Architect can

• Assist the Owner in selecting a site, assessing its potentials and problem areas, along with the costs of development.
  
• Work with current cost information. Know the general building costs so that the bounds of the ballpark are known. Work closely with the contractor or cost-estimator to determine the cost of a design—as early in the design process as possible. Use this information to inform the design development decisions.
  
• Keep the house as small as possible; work with design tricks to make it function and feel larger. Avoid excess circulation and in-between space. Consider eating and bed alcoves. Place windows carefully to open up small spaces—on the long wall of a narrow room, at the end of a hallway. Don't skimp on storage space—a clean and clear house will feel larger. Design outdoor decks, terraces and covered areas that extend the indoor living space. Use color and mirrors to expand perceived space.
  
• Stay within a simple form. Keep the major building systems straight forward, without complicated (read expensive) details. A roof with multiple slopes and dormers may look really neat, but may not be high on the priority list.
  
• Focus on a few well-crafted details or quality materials for a big impact; leave other elements very basic. Custom millwork, commercial mortise locks at the front door, and a radiant floor heating system cost more than average, but have a big impact. Vinyl windows, standard manufactured roof trusses, and gypsum wall board surfaces are cost-effective major elements.
  
• Design within a 2 and 4 foot grid to minimize the waste of materials and labor.
  
• Be creative. Use shop-grade plywood or tempered hardboard in an interesting pattern for the flooring. Leave out closet doors and their return walls; make curtains instead. In lieu of window trim, wrap the window openings with drywall, then paint a border around it.
  
• Plan for the future. Keep the design flexible so that future changes can happen easily without a lot of waste or commotion.
  
• Keep an eye on life-cycle costs. Don't be penny-wise and pound-foolish. The on-going costs of operating and maintaining a house can be significant. Don't skimp on insulation and other energy conservation measures. Choose durable, long lasting materials.
  

The Builder can

• Provide cost information to the Owner and Designer/Architect to assist with decision-making during the design process. Bring attention to the building systems and details that will be disproportionatly costly.
  
• Spell out alternatives and options for building systems, construction details and materials that may be less expensive, or give higher value.
  
• Be organized. Careful planning and scheduling can make the construction process more efficient, saving time and money.
  
  

These ideas outline a few ways to get a handle on the budget. To meet this goal, all three parties—owner, architect, builder—must work together and communicate openly and frequently. If one party shrugs off the need to stay within the budget, everyone else's best efforts can fall short.

In the end, it is important to remember that no matter what the budget, a house can be made a special and nurturing place.