Expansion Planning Checklist Part 3: Considerations When Planning your Budget for your Project

At the conception of any major construction project, before anything else can be determined, the budget must be thoroughly thought through. The budget helps to establish the allotted amount of money that will be spent on a specific project. The project budget can be established by comparison of similar projects, a preliminary analysis of what will be needed for the project, and an assessment of your projected income and expenses throughout the duration of the project. Establishing a comprehensive budget is imperative to all construction projects, ranging from remodeling to completely new construction.

Basic budget considerations.

When beginning to construct a feasible and realistic budget for your project there are many factors to consider. From the hard costs, which include excavation and site preparation, plumbing, electrical, HVAC, and so on, to the soft costs, which include land costs, land surveying, governing body compliances, the budget preparation process may seem intimidating. Utilize the help of a seasoned professional to lead you through the process. The total project cost for a typical commercial or industrial building project include:

  • Land costs
  • Legal fees
  • Survey costs
  • Project financing costs
  • Government fees
  • Architect/engineer fees
  • Various consulting fees
  • All direct costs, including site development and building construction
  • Contractor’s costs, including general conditions
  • Contingency for probable scope changes
  • Furniture, furnishings, and equipment
  • Other costs depending on the project type and location

A contractor or developer, such as ACI, who has built similar projects can help you estimate cost. When initially approaching the professionals, use this as a time to understand their services, as well as match up your expectations with what they offer. This is also the time to share your overall goal and budget. The more clear and concise plan that you have will assist with aligning your desires with if and how the contractor moves forward with the plan that suits everyone.

Attention to detail.

The rule of thumb that we follow at Associated Contractors Inc. is the closer one gets to the source of costs, the more accurate the estimate will be. By focusing on every detail of the project and all options and scenarios that can arise, we know that having the answers up front can ensure that we stay within the comprehensive budget.

How we can help you.

With ourconstruction management services here at Associated Contractors Inc. your project will be managed with the utmost organization, critical thinking, and overall industry expertise. Our seasoned team of industry specialists can guide you through the budget and planning process, as well as provide suggestions. Contact one of our specialists today to start planning your future projects.

 

Be sure to check out other topics in this series:

Expansion Checklist Part 1: Preconstruction Considerations 

 Expansion Checklist Part 2: Bidding Process vs. Design Build 

 Expansion Checklist Part 4: Selecting Your Project Team 

 

About Author

blog author

George Ray

George Ray is the owner of ACI and has been working in the construction industry for over 40 years. George has worked in the field in numerous roles including Laborer, Carpenter, Superintendent, as well as office roles including Estimator, Project Manager, Sales, Controller, VP, and President. He has extensive experience with pre-engineered buildings and design build.

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