Key Processes of Construction Budgeting

 

Planning for a construction project is a huge undertaking for project managers, whether it is for building an entirely new structure, a new road, or a renovation project. One important role of a project manager is planning a budget for the entire duration of the project. A construction budget determines how fast you can finish a project, the types of technologies and tools you need to utilize, and the level of skill you should hire, and so on. To help you plan your budget thoroughly, a professional software solution like oracle primavera should be on your side.

 

To help you hit your targeted budget, take into account these key phases:

 

Analysis

Since construction projects are generally costly, you need to deal with cost overruns and avoid breaking the bank. Determine and assess the requirements and goals of your project. Check the condition of the site and review any existing documentation. Also, find out the resources available and limitations of the project. You should also be aware of code and safety requirements as well as the permits you need to proceed.

 

Development

The stakeholders and decision-makers involved in a project must agree on the final design before things can get started. When there is a project sign off, this key document becomes official. With this, create a list of the materials and tools required, and have an estimate for the overall project. Doing this will help you analyze bids from different contractors when it is choosing time.

 

After finalizing your timeline and budget, make sure that the contractors you choose have all the essential requirements for the bid. Consider putting software requirements in your bids so that your contractors are using the same platforms as you. Project management software such as oracle primavera can help the communication among all parties consistent throughout the project.

 

Pre-Construction

Before you break ground, discuss the project with all stakeholders, including the probability of risks and how to mitigate them. This will minimize risk from the initial phase; thus, keeping the project on track and on schedule without unnecessary expenses. Use tools like oracle primavera to keep track of task being done, so there are no uncertainties or questions when sorting out matters with a contractor.

 

Organize all documentation for contracts, deliverables, regulations, permits, etc., in a convenient location. Submit all the necessary paperwork, ensuring you have a good head start. The last thing you want is being unable to begin construction work because your permits have not been cleared yet.

 

Construction and Closeout

It would be beneficial if you keep a change order log so that you can note and track any changes easily. Develop a workaround for problems that may arise along the way. A tool like the oracle primavera can help you handle those steps. If you have change order processing fees, explain them well and walk the clients through the process.

 

Track any materials being used and your deliverables, while keeping everyone aligned from utilities to contractors. By doing this, the payments within your project are accurate, fair, and timely. Prepare warranties, closeout checklists, punch lists, and for inspections.