Construction companies plan their expenses based on the amount of work they want to do. And in order to obtain a building permit, it is also necessary to provide a cost estimate.
In order to draw up a construction project budget, you will need an implementation plan – when and how all the work will be carried out from start to finish, as well as an estimate – how much money will be needed for each stage of construction.
Construction of an object is a long process, it can take from one and a half to six years, or even more. During this time, the prices for materials and services may change. In order to avoid unpleasant surprises, you need to review the budget from time to time, update information on the cost of materials, services, and also check whether everything in the project is going according to plan. If something has changed, the budget must be promptly adjusted.
The main cost items of the construction project budget are the costs of purchasing materials, third-party services, machinery and mechanisms, payroll, land costs, project, and examinations.
The budget of a construction organization consists of two parts:
Income – the money you will earn when the object is built and sold.
Expenses are all the money you spend on construction, starting with the drawings and ending with warranty service, if provided for by the contract.