Budgets And Planning - It's All About Money

Budgets and Planning

It is crucial to have a plan for the project.

When you are embarking on a new project, it is crucial to have a plan for the project. You need to know the goals you need to achieve for success. This building planning process has six parts that build upon each other:

• Space needs

• Building characteristics

• Project constraints

• Land use

• Scheduling and implementation issues

• Cost and budget

All of this information is designed to answer just one question (although there are many ways to state it) -  "How much will the building cost?

From that point of view the whole planning process is about money. Each of the six areas of the planning process, while necessary in its own right, are also needed to answer that bottom-line question about cost. Space needs translate directly into construction costs; and so do the building characteristics and land use. These might also affect design costs. Project constraints and implementation issues can affect design costs as well as other "soft" (non-construction) costs. Finally, budgeting is about bringing all this cost information into alignment with the money that is available to fund the project.  

It really is all about money. 

To keep nasty surprises at bay, we've found that, if your budget is comprehensive, then surprises are much less likely to occur. "Comprehensive" means lots of detail; and lots of detail also makes your budget more accurate. Besides the main costs of construction there are many issues that are easy to underestimate or overlook altogether. Construction costs are the "hard" costs. The "soft" costs fall into two categories: Design, and Development. All these costs are listed in our template for a comprehensive Project Budget. Strive to incorporate all of these budget concepts into an integrated process for answering …

"How much will the building cost?"