SETTING UP A BUDGET FOR A CONSTRUCTION PROJECT

There are numerous ways to prepare a project budget, and the most effective one is usually determined by experience. The division of costs into hard and soft costs is one of the most popular and tried-and-true methods for creating a building budget.

01

Depending on the location and the size of the project, property expenses vary substantially. Costs associated with the purchase of land might make up as much as 60% of a project's budget in highly desirable locales.

PROPERTY

02

Numerous expert advice and other services are needed for construction projects; they are referred to as soft costs.

PROFESSIONAL SERVICES AND FEES

03

There are several construction-related charges that cannot be negotiated. Negotiating the price of permits and drawings with the city or architects is not very easy. Your material expenses are the key area in which you can tighten a budget and derive more value from your project.

MATERIALS

04

Predicting your labor costs is a critical component of creating a reasonable construction budget. Costs connected with simply showing up on-site will apply to professionals such as tradespeople, subcontractors, equipment operators, and others.

LABOUR

05

Project management personnel must be highly competent and well-organized for construction projects. Members of the project management team also need their own tools and materials to do their work effectively.

PROJECT MANAGEMENT

06

Contingency plans in construction project budgets prevent costly delays in production because it gives you the capital to get back up and running no matter what happens.

CONTINGENCY