What are the steps for preparing a construction budget?

Unite professionals to advance email dataset knowledge globally.
Post Reply
monira444
Posts: 490
Joined: Sat Dec 28, 2024 4:37 am

What are the steps for preparing a construction budget?

Post by monira444 »

As you can see, the construction estimate is not a standardized document. That is, it is not the same for all works. Here, the help of data is essential to understand the type of construction in view.

Different materials, equipment and construction techniques can cause varying impacts on the final budget result.

Try looking at a competitor's quote and one of your company's quotes for the same job. Of course, the final value will change.

The ideal is to build a document that is as assertive as possible, reinforcing not only your management power, but also your competitive potential in the market.

Study of variables
What can generate costs in your work? Have you thought panama whatsapp data about it? Well, it's time to catalog all this, to achieve what is called " variable study ."

This is a proactive survey of all possible costs involved in the project.

However, don't think it works for:

You need to organize this information, understanding how many and what resources will be required for each of these steps.

This organization can participate in various ways, such as by floors of the building or even by structural parts (main structure, electrical, hydraulic, finishing, etc.).

Evaluate the costs
An assertive assessment of the costs associated with construction is necessary.

However, it must be understood that there is a division between these values, consistent with the management of direct and indirect costs .

Direct costs
Direct costs are those related to the construction site, such as expenses with the necessary equipment and materials.

In the case of labor, the measurement varies according to experience and the number of workers. Therefore, it is “measured” in the form of money.

Materials and equipment have unit costs, such as per package, bag, kilo, square meter or cubic meter.

On top
Indirect costs are therefore outside the construction site . In fact, they are the expenses necessary for the work to be carried out, although they are not direct investments in construction supplies.

Examples of indirect costs include insurance, office expenses, employee salaries, among others.

Set the deadline
Your team also needs to be tasked with setting deadlines for the work. We speak in plural because there are different steps that need to be completed, not just the final delivery of the work.

A residential building, for example, needs to have 50% of the project ready so that it can be evaluated by financial institutions in case of seeking affiliation with credit programs.

At this point, it is important to think optimally:

Tight deadlines can have a negative impact on the quality of work, as can very long deadlines, which are particularly hard on the construction company's pocket.

Evaluate the benefits
To evaluate the profits, you need to calculate the BDI (Benefits and Indirect Expenses) factor.

It is calculated on the direct cost, relating indirect costs, profits and taxes on value.

So you arrive at the final sales price.


What does it take for a good construction budget?
It should be noted that, although the budget is not 100% accurate, it must have a certain level of accuracy, which is directly related to the information and actions taken during execution.

But how do you make a work estimate safely and efficiently?

Verification and analysis
When managing projects, and especially in terms of budget, it is essential to consider their viability.

This is to define what and how it will be built, on whose behalf, for what reason, and whether the return on investment (ROI) will be satisfactory.

Similarly, it is also extremely important to gain knowledge of the project's alignment with local legislation.

That is, knowing whether it complies with all legal regulations, in order to avoid fines and penalties that can lead to more costs and time.

Documentation study
The construction budget has a phase dedicated to the study of the documentation required for the start of construction, as well as the costs that will be required.

At this stage, it is interesting to have a database and contacts that is able to direct a particular document to the most appropriate person, with everything necessary to avoid delays in the physical financial schedule.
Post Reply