50+ Sample Construction Budgets

Construction Budgets: What Are They?

A construction budget is a document that outlines the finances allotted for constructing or remodeling a building. Its primary intent is to anticipate all costs and expenses of the processes for the entire project. The construction budget is often tracked using a form or a spreadsheet.

Based on an article published by Statista, with spending over 1.29 trillion US dollars in 2018, construction remains one of the top revenue-generating industries globally.

The Different Elements of a Construction Budget

Before a construction budget comes through, there are several steps that need to be taken care of. Any project related to building infrastructure should undergo the assessment of projected income and expenses through the life of the project and the comparison with similar projects. It means that resources must be identified first before establishing a budget plan. Moreover, pre-design analysis or requirements and analysis of preliminary design options should also take place. Here are what a construction budget should include.

Construction Cost: The construction cost is a part of the overall costs incurred during the development of a built asset like a building. Generally, construction costs are obtained from the actual construction works or the value determined in a contract by a contractor or subcontractor.Property Acquisition: Any proof of land and/or property acquisition should be in the construction budget. It shows the process of gaining ownership or control of real estate property or an interest in real property.Approval Fees: The approval fees are determined by the local government from time to time. It must be included in the construction budget so that you have an idea of how much it will cost you.Cost Planning: This part helps investigate the fiscal feasibility in the early stages of a construction project. It assists clients in determining whether a project is doable within the given time and budget constraints.Site Investigations: Site investigation is the process of collecting information, assessment of data, and reporting potential beneath a project site. Hence, the costs of the process must be indicated in the construction budget.Fixtures, Fittings, and Equipment: These are items that have no permanent connection to the structure of a building. However, it is categorized as one of the expenses, which should be seen in the construction budget.Moving Costs: The moving costs are the costs incurred during the relocation or moving of staff, equipment, and other items required to complete the project. Contracts: As we all know, constract are important business documents as it sets out the agreement, roles, understanding, and obligations of each party involved. Thus, it should not be missing in the construction budget.Consultant Fees: Consultant fees are a percetage of the construction cost allocated for the architect, cost consultant, service engineer, structural engineer, and project manager. Contingency: A contigency is a downside risk estimates that make allowance for the unknown risks associated with a project. And contigency costs refer to the amounts that are held in reserve to deal with unforeseen circumstances.

How to Make a Constructio Budget

Creating a construction budget can be tedious job. That is why we highly recommend using a template. The best thing about using a template is that you do not need to start from scratch. As one of it many benefits, our templates come in with suggested content that you can leave as is or modify to align with your goals. To start, browse through our website and discover a collection of ready templates. Here are the steps you should follow in making your construction budget.

Step 1: Use a Template

Before choosing a template, make sure you fully understand the process of a construction project. It helps you decide what template to use. To get a copy of the template, just click the download button. After that, you can go on the nest step.

Step 2: Modify Your Template

You can either work on the suggested content as it is or modify the template. But it is not what your budget should be all about. If you want it to be professionally-made, make sure to include all things necessary such as a list of expenses, allocation of each spending, date of spending, and so much more (refer to the elements above).

Step 3: Make It Simple

Money is a contentious matter. To be more effective at budgeting, make sure your construction budget is simple and easy-to-read. You should easily understand it by just looking at the content once or twice. Additionally, add tables, charts, or bar graphs to neatly organized the list and this will make things in order.

Step 4: Revise Your Budget

Before using the construction budget, make sure to review it first. Although you can make adjustments along with using the document, revising it helps avoid errors, especially with calculating the costs. After that, stick to the budget plan to achieve your financial goals.

FAQs

What are the different types of budget templates?

  • Budget Worksheet Template
  • Construction Budget Template
  • Annual Budget Template
  • Capital Budget Template
  • Travel Budget Template

Why is budgeting important?

Budgeting is important because it helps you monitor your spending, sets your priorities, and paves a way towards achieving your financial goals.

How do you control a construction budget?

There are fives to control a construction budget:

  • Use a construction management software
  • Regularly update cost plan
  • Consistently submit cost reports
  • Prepare and review contingency plans
  • Encourage project team to design within the cost plan at all stages

Operating a construction business does not only require skill sets of structural knowledge but also financial management. If you have a good budget plan, your business is more likely to achieve financial goals. For more budget templates, go to our website and get the chance to sign up for any of our subscription plans.