There’s only so much you can do in a construction project without a budget. Whether it’s a residential building or commercial property, it’s important to have a budget that will facilitate the project and prevent you from running out of funds.
This article will provide insight into everything you need to know about construction project budgeting. Read on:
What is a construction budget?
A construction budget is an estimated amount of money needed to complete a construction project from the start to the end. This budget will not only include the cost of materials, but it will also include labour cost, safety cost and transportation costs. When budgeting a set amount for a construction project, you should leave some room for emergencies and other miscellaneous or unexpected expenses that may arise during the construction process.
Who manages the construction budget?
Managing a construction budget is one of the most important aspects of ensuring the success of your project. So, construction budget management involves monitoring and tracking the financial resources of a project so as not to exceed the allocated budget. The budget is drafted based on the calculation of the project estimates such as labor costs, equipment, materials etc.
Depending on the size of the project, the budget needs to be overseen by multiple people. They include:
The project owner
The owner of the project contributes to drafting a budget and setting parameters to accomplish a successful project. Their duty during the construction process is to make critical decisions and monitor the progress of the project. These actions affect the budget and determine if the project can thrive on the existing budget.
Project manager:
The construction project manager is responsible for overseeing and monitoring the project. Due to the nature of their jobs, they are acquainted with different suppliers and can collaborate with them to get the right cost that fits into the budget of your construction project.
Cost estimators
A cost estimator is responsible for providing a detailed cost analysis for the project. They help in reviewing project plans and they research old and current prices of materials and labor. This ensures the budget is curated accurately.
Architectural and Engineering Teams
These teams are responsible for providing information concerning the technical aspects of the project. This information contributes to curating an updated and accurate budget.
Contractors and subcontractors:
Contractors and subcontractors are experts in their respective fields which means they have access to information hidden from the general public. They provide information that helps in reducing cost and they work with project managers to come up with a reasonable budget for the project.
These people work together for a successful construction project management.
Conclusion
Creating and managing a construction project is a demanding task that requires the cumulative effort of several individuals and teams. However, a well-curated budget ensures that your project stays on track and it helps to build trust among clients, workers and stakeholders, ensuring a successful project.
