Why 70% of Building Projects in Tanzania Go Over Budget

Almost every client we meet has a story like this: “We set a budget of TZS 200 million, but by the time construction finished, we ended up paying over TZS 350 million.”

It’s frustrating, but it is also avoidable. At Elegant Designs, we see the same mistakes happening on projects across Tanzania. In fact, over 70% of building projects here go over budget — and most of these overruns could have been prevented.

1. Lack of Detailed Planning

A project that starts without proper plans is a project waiting to fail. Without detailed drawings and specifications, contractors make guesses. Every change along the way adds costs. For example, a small design tweak midway can increase your budget by 10–15%.

2. Hidden Costs

Many costs are easy to overlook when budgeting: approvals, permits, soil tests, and minor materials. Missing these in your plan can make your project unexpectedly expensive. A neglected permit or soil test could delay your project for months and cost millions.

3. Mid-Project Changes

Clients often adjust the design as the project progresses — a bigger balcony, extra rooms, or different finishes. While it seems small, these changes multiply costs. On average, mid-project changes can add 15–25% to your original budget.

4. Poor Supervision

Construction without proper supervision is a recipe for mistakes. When no one monitors the work, errors pile up, materials are wasted, and repairs become unavoidable. For instance, a misaligned wall or incorrect plumbing can cost millions to fix after completion.

5. Cheap Materials and Labor

Trying to save money with low-quality materials or unskilled labor usually backfires. Cheap bricks, weak cement, or poorly installed plumbing may seem like savings today, but they often result in leaks, cracks, and early repairs — sometimes costing double or triple the initial “savings.”

How to Avoid Overruns

These mistakes are preventable. At Elegant Designs, we help clients:

• Plan in detail before construction starts
• Include all hidden costs in the budget
• Select materials and finishes that balance cost and durability
• Supervise construction to ensure quality
• Anticipate changes and manage them effectively
• Final Thoughts

Overbudget projects are not inevitable. Most are the result of predictable mistakes that happen early. Planning carefully, choosing the right materials, and supervising construction properly can save millions and protect your investment.

If you want your next building project in Tanzania to stay on budget, on time, and built to last, we can help.

📩 Email us at designers@elegant.africa.   
📲 WhatsApp us at +255 745 749 973