Budget for building design and construction projects
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.
The CIOB Code of practice for project management 4th edition, defines a budget as 'Quantification of resources needed to achieve a task by a set time, within which the task owners are required wo work... a budget consists of a financial and/or quantitative statement, prepared and approved prior to a defined period, for the purpose of attaining a given objective for that period.'
Budgets for construction projects 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 project 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 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 case.
- 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
Have a look at this incredible Möbius strip-inspired media centre in Beijing.
OMA's plans for new arts centre to revitalise city's culture given planning approval.
Select committee criticises DEFRA for failing to take up its recommendations.
Nicola Sturgeon presents ICE's People's Choice Award to the Forth Road Bridge reopening.
Green paper published for consultation.
Mental health issues affect 80% of construction workers. Read our interview with the founders of a new wellbeing initiative.
Would Stephenson be disappointed by the lack of progress on the high speed transport of Hyperloop?
The immersive pop-up cinema experience that could revolutionise on-site health and safety training.
5 out of 10 filtering facepieces fail HSE tests.
Eleven Magazine announce the winner and runners-up in their Moontopia competition.
As January is the time for hitting the gym, Designing Buildings Wiki lists the best gym architecture in the world.