Construction Budget: A Quick Guide (with Examples)

Construction Budget: A Quick Guide (with Examples)


Construction projects will never get off the ground without financing, so it is important to create a construction budget. A construction budget is an estimate of the money required to take a construction project from initiation to closure, including all associated costs and expenses that are accrued during the building process. It is an attempt to forecast all costs in a construction project, but should leave some wiggle room to account for any emergencies or unexpected building costs. Construction project managers start with the project plan to assess what materials will be required, and other costs such as job site preparation, labor costs and safety requirements for all on-site workers, transportation, and residential and commercial construction projects will also have unique costs. Having a budget and construction project plan go hand-in-hand with any successful project, and it helps to keep the project on track during execution.

ProjectManager is a construction management software that plans, monitors and reports on your construction budget in real time. It is important to understand construction project costs, which fall into three basic categories: direct costs, general conditions, and profit and overhead. Property is dependent on where you are building and the scope of the project, while professional fees and services are also included.