Project Budgeting
Experience with proper project planning is absolutely essential if you want to correctly budget a commercial construction project. After all, the budget needs to represent the most accurate vision of the project possible, including the amount of resources and labor that will be utilized during the building process. Budgeting is a unique process because it cannot be accomplished in full until the project’s design has been drafted but, at the same time, clients enter into the process with a budget in mind and it is the contractor’s responsibility to adhere to the client’s wishes. This is why, during the design process, several potential designs are drawn up, each of them with their own unique budget. Once the design which best suits the needs of the client is found and noted the budget can be completed and construction can begin.
What kinds of considerations go into the creation of a budget?
- Soft Costs: These are the majority of the non-building costs for a particular project, involving items like the usage of architects, engineers, consulting services, land surveys and any special consultants which might need to be hired.
- Construction Costs: As you might imagine, most of the funds allocated for an average commercial construction project would fall under this category. These costs include labor, materials and equipment necessary for the construction process, as well as any temporary structures like fencing or partitions.
- Permit Fees: A construction project cannot commence without the proper permits. These fees are different from every project depending upon its specifics and scope. Some locations will even ask for the permit fee after the project is complete to make sure that any changes to the initial design made by the contractor are factored into the final price.
- Moving/Storage: If you’re moving to a new facility chances are you’ll want to bring a number of items from your old location along with you. The cost of moving these items, as well as temporarily storing them if necessary, will factor into the budget as well.
- Contingency: There are certain expenditures during every construction project which cannot be accounted for or predicted in advance. As such, a contingency amount is added to every budget to provide insurance against unforeseen developments.
If you’re looking for a company which can help you budget out your project accurately and exhaustively, look no further than Logan Creek.
