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4 Major Steps of Construction Budgeting

Whether you are constructing a new building, renovating an existing building or adding on your current house, proper planning and budgeting is crucial for the project. It’s true that you can’t be 100% prepared for the construction project’s realities. However, you can plan and budget in advance to deal with major challenges as they arise. Here are the major steps of construction budgeting that will enable you to complete the project within your target budget.

Step 1: Discovery and Analysis

A construction project is expensive. It’s therefore crucial to take time to conduct extensive research and analyze the requirements and goals of the project. Understand why the construction project is being undertaken now. Once you have conducted research and answered all questions, move on to specifics. Evaluate conditions of the site and the existing documentation. Assess the available resources for the project and limitations. Have realistic limits and take note of the code and safety requirements as well as permits that the project requires.

Step 2: Design and Development

This step entails determining the construction project’s scope. Meet the designers and architects to leverage their expertise. Ask questions about the available options while pitching them with models or drawings. Include all decision makers and stakeholders in this step to ensure that they are in agreement with the final design.

Step 3: Pre-Construction and Documentation

This entails documenting the approved, final design as well as the budget. Make sure that the project is clearly understood by the decision makers. They should also be ready to move forward with the final design. Meet all stakeholders, including the architect and contractor, to discuss details of the project assess and issues that may arise in the future. Keep documentation for regulations, permits, deliverables and the contracts. Also keep track of what is done on site to ease the process of resolving issues and responding to uncertainties and questions.

Step 4: Construction and Eventual Closeout

The actual construction of a building and eventual closeout can be the longest step. Nevertheless, it’s crucial to monitor the process to ensure that it’s always close to the projected costs and schedules. Maintain a change order log for easy making of changes when necessary. Stakeholders should also be aligned from the contractors to the utilities. Deliverables and the used materials should also be tracked. Effective tracking ensures accurate, timely, and fair payment of the contractor’s progress.

Following these steps will ensure effective and easy construction budgeting. Nevertheless, working with an experienced contractor will make every aspect of the entire construction project easier.


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