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Real Estate News The formula for keeping a project within budget: 5 simple controls - La Nacion Propiedades

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The formula for keeping a project within budget: 5 simple controls - La Nacion Propiedades
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March 27, 2026



Although some inflationary issues are beyond our control, there are aspects of organizing a business that can be planned to prevent excessive or unexpected expenses.





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While some variables can be standardized and controlled, others depend on the macroeconomic context.Marcelo Manera - LA NACION



One of the biggest concerns for anyone undertaking a project is unforeseen events. Small discrepancies can escalate into significant problems and cause the final budget to deviate significantly from the original estimate.

While some variables can be standardized and controlled, others depend on the macroeconomic context. “ The budget will always deviate in an inflationary economy ,” states Germán Gómez Piccaso, founder of Reporte Inmobiliario, adding that even in these cases, tools can be used to ensure that the deviation keeps pace with inflation and does not exceed it.







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Discrepancies can become significant problems and cause the final budget to deviate from the original.Shutterstock



Among its recommendations, it highlights the importance of agreeing with contractors, from the beginning, on monthly adjustment clauses tied to an index.

Regarding materials, the professional warns about a common practice: “Many try to freeze the price with “stockpiling” - buying supplies and leaving them stored in the yard - but it can be a double-edged sword, because you become dependent on a third party.”

Finally, Gómez Picasso emphasizes the importance of contracts denominated in pesos with monthly adjustments . “It’s not feasible to make agreements in dollars when you don’t know how the exchange rate will evolve in relation to costs in pesos.”



Five key controls to prevent deviations​



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It is important to agree with the contractors, from the beginning, on monthly adjustment clauses tied to an index.Shutterstock

Economic factors and the current inflation in the country are issues that must be considered in budgeting. However, they are not the only points to take into account. In this context, architect Luciano Kruk identified five points related to organizational issues that must be considered to maintain control of the project:



  • Define the project in detail before starting construction . “This is the most important thing,” Kruk points out; it avoids improvised decisions that often increase construction costs.
  • Having a detailed breakdown of the construction company's budget is essential. A clear breakdown by category allows you to anticipate costs and avoid "surprises" that could alter the final amount.
  • Compare the budget and the actual cost at least once a month. This task is usually handled by the project manager. They are responsible for ensuring that the construction progresses according to the budget and the established plan.
  • Avoid making changes during construction. "This causes the cost to grow exponentially," warns the architect, since unforeseen work is usually budgeted with a proportionally larger impact.
  • Conduct daily site checks . The site manager must supervise progress and assist the client in decision-making, especially in situations not initially anticipated.






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Projects that deviate from the budget usually have a systematic accumulation of small discrepancies.Freepik

Although countless factors can deviate from the plan and affect costs, these are some of the basic controls that should be implemented to minimize adjustments: “Generally, projects that deviate from the budget do so not for a single reason, but rather due to a systematic accumulation of small discrepancies that go unchecked,” Kruk concludes.





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