Budgeting
The Project Budget
A budget is a statement of the amount of money that is available to spend over a period of time, on a specific project. It may include an outline plan for how that money will be spent, and a breakdown of the items it will be spent on.
Budget for construction projects help determine what is affordable and should be set as early as possible, cost effective. It is important that they are based on evidence and are as realistic as possible.
The project budget can be established by the budget planner:
- 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.
The Project Budget is normally set by the customer and is distinct from the Cost Plan which is prepared by us.
The Cost Plan
We ensure the Cost Plan is managed throughout the life-cycle of the project. The key components we pull together and manage include;
- Direct costs: are all the costs required to perform the physical scope, this could include materials required for the build and or furniture, along with the labour costs
- Indirect costs: these are costs related to supervision and management of the project or could be also known as overheads
Procurement
As part of building up a Cost Plan, talking directly to suppliers is key in ensuring value for money. Having several quotes to compare is paramount. We pride ourselves on providing the most suitable option at the right price. We don't buy these items and add a handling charge, we source on your behalf and then you can buy directly in the knowledge its value for money.
Alternatively a number of our customers have asked us to purchase on their behalf, but again at the net price with no added charges, they can even have copies of the invoices. This removes the huge costs you can incur employing Quantity Surveyors.
