Budgets for projects should be set as early as possible.

A budget can be established by:

• Assessment of projected income and expenses through the life of the project.
• Comparison with similar projects.
• Assessment of the funds available.
• Pre-design analysis of requirements.
• Analysis of preliminary design options.

The budget is set by the client and is distinct from cost plans prepared by a cost consultant which are likely to focus on the construction cost.

The client's total project budget may include:

• The construction cost.
• Land or property acquisition.
• Approvals fees.
• Planning costs (Section 106 Agreement or Community Infrastructure Levy).
• Financing costs.
• Site investigations.
• Fixtures, fittings and equipment.
• The cost of decanting and relocating, including costs associated with moving staff.
• Contracts outside of the main works.
• Insurance.
• Consultant fees.
• Inflation.
• Contingency.
• VAT.

It is important that the client makes clear what costs should be monitored by the cost consultant and what will remain within the control of the client organisation.

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Related articles on Designing Buildings Wiki

• Approximate quantities cost plan.
• Benchmarking
• Bills of quantities.
• Business plan.
• Capital allowances.
• Common arrangement of work sections.
• Contract sum.
• Contract sum analysis.
• Cost consultant.
• Elemental cost plan
• Final account.
• Initial cost appraisals
• New Rules of Measurement.
• Pre-tender estimate.
• Tender pricing document
• Whole-life costs.