A budget is a statement of the amount of money that is available to spend over a period of time, or on a specific thing, such as a building. It may include an outline plan for how that money will be spent, and a breakdown of the items it will be spent on.
Budgets help determine what is affordable and should be set as early as possible. It is important that they are based on evidence and that they are realistic.
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 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.
- Consultant fees.
 Related articles on Designing Buildings Wiki
- Approximate quantities cost plan.
- Best value.
- Bills of quantities.
- Business administration.
- Business plan.
- Capital allowances.
- Capital costs.
- Commercial management.
- Construction loan.
- Construction organisations and strategy.
- Contract sum.
- Contract sum analysis.
- Cost consultant.
- Cost control.
- Elemental cost plan
- Final account.
- Initial cost appraisals.
- Net Present Value.
- New Rules of Measurement.
- Outturn cost.
- Pre-tender estimate.
- Tender pricing document.
- Working capital.
- Whole-life costs.
Featured articles and news
Sadiq Khan publishes a new development strategy for the capital.
In the week of the momentous Heathrow decision, we look back at the development and design of T5.
BSRIA’s flagship event will address performance and wellbeing beyond compliance.
Young Architects and Developers Alliance launched to build the relationship between the two disciplines.
BS 8536-2:2016 Design and construction: Code of practice for asset management (Linear and geographical infrastructure).
Paying for off-site goods or materials can be useful, but it puts the client at risk.
People power can be transformative if properly informed and inspired.
ZHA win competition to build an Urban Heritage Administration Centre in Saudi Arabia.
Leaps, not steps, are needed to avoid a ticking time bomb, say BRE in response to Farmer Review.
A multi-purpose hall in France covered in a translucent orange membrane.
Winning designs revealed for a rock formation-influenced residential complex in Rennes.
An article explaining the techniques, regulations and environmental impacts of carbon capture and storage.
Watch one of the first documentaries by the acclaimed Adam Curtis, examining the substandard system building of the 1960s.