Planning a construction project budget begins with assessing its profitability. The initial plan is created before the start of work and is approximate, taking into account possible deviations and errors in the implementation process.
At the initial stage, the main cost items, terms of contracts with customers, range of materials and services are determined.
A detailed construction project budget is drawn up after concluding a contract with customers, when the company has all the necessary information about the upcoming work and costs.
The implementation of construction project budgeting takes place in several stages:
Evaluation stage: primary analysis is carried out, approximate data and figures are collected.
Stage of development and conclusion of contracts: the project is detailed, including all cost items, payment schedule and stages of implementation.
Implementation stage: adjustments are made to the budget, risks that may affect profits are assessed. If there is a significant difference between the plan and actual costs, the budget is re-approved.
Final stage: reports on the results of the project are compiled, reflecting key performance indicators.
The main advantage of budgeting in construction is the presence of a clear plan that serves as a guideline throughout the entire life cycle of the project.
Knowing the planned amount allows you to control expenses at all stages, including the procurement stage. Thanks to this, you can notice in time that more materials are purchased than necessary, or that their cost is higher than planned. This makes it possible to optimize finances in a timely manner and avoid unwanted overspending.