How to create a construction budget?
Do you renovate? Do you add to an existing location? Do you construct an entirely new one? All of these cases are construction projects and for sure proper planning and budgeting for them must be taken very seriously. How to create a construction project is a very important question from small construction companies to joint ventures on mega projects. When it comes to answering this question even the most experienced project managers face challenges. There is always a struggle to set proper expectations for their construction projects trying to determine the unforeseen costs that can occur.
In this post we are going to provide some useful links for construction budgeting that could help you on creating a construction budget.
This article comes from Smartsheet.com and it contains 4 phases for a successful construction budgeting which are:
- Phase 1: Analysis and discovery
- Phase 2: Design and development
- Phase 3: Documentation and pre-construction
- Phase 4: Construction and closeout
The next article in our list comes from Stonemarkcm.com and it focuses on:
- How to evaluate potential contractors by their honesty and transparency in their budget projections.
- How an accurate project budget begins with well-established, clear, and coordinated drawings.
- Why Cost management in construction should include the following tasks
From Buildriteconstruction.com comes with an article for construction budgeting that focuses on:
- Project Planning And Budgeting
- Basic Budget Considerations
- Hard Vs. Soft Vs. Site Costs
- Unforeseen Costs
Designingbuildings.co.uk has an interesting article for building design and construction projects where analyzes a project budget in:
- Assessment of projected income and expenses through the life of the project.
- Comparison with similar projects.
- Assessment of the funds available.
- Pre-design analysis of requirements.
- Analysis of preliminary design options.
What makes this article interesting is that it has tons of links associated with the terms mentioned.
Continuing our guide to budgeting methods for construction projects this article from Esub.com comes with a free Construction Budget Template. The article mentions the 6 phases in the construction project management life cycle that overlap with each other to deliver the completed project which are:
- Pre-project Phase
- Planning & Design Phase
- Contractor Selection Phase
- Mobilization Phase
- Operations Phase
- Project Closeout & Termination Phase.
Catrentalstore.com is a website focused on rental equipment and it has posted a very interesting article on how to plan a budget for a construction project. According to the article what are necessary to be included in a construction budget are:
- Professional Fees & Services
- Equipment & Tools
- Project Management
- Liability Insurance & Profesional Bonds
- Utilities & Taxes
Thehouseshop.com comes with a small but comprehensive article for the necessary budgeting principles for a construction project.
The article from Smithschafer.com mentions 6 tips for creating a construction budget which are:
- Develop or refine your business plan
- Look at the market
- Evaluate your expenses
- Determine if your rates are reasonable
- Create a spreadsheet
- Track your progress
Create and control your construction budget with Rabio
Rabio is open-source software that was designed to manage and control budgets, their costs, and produce reports based on a flexible cost breakdown structure. It is a budgeting software and it is distributed for free.
You can easily use it for your personal needs or your business. Using Rabio ‘s managers system you can design and control your budget and compare it with costs at any time using the easy reporting internal system.
Furthermore, you can alter your budget or create forecast and projection managers and compare new data with the original budget.
Demo Construction Projects
Currently there are two live Construction Projects that you can check on Rabio demo which is available 24/7. Read details here.
Rabio is open-source
You can download Rabio open-source version here