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
Read about the launch event for our major new report about the worrying and widening construction knowledge gap.
We've analysed 6 million pieces of data to reveal that the knowledge framework underpinning the construction industry is no longer fit for purpose.
The theme for BSRIA's 2017 Briefing is 'Solutions to Tomorrow’s Challenges in Today’s Buildings'.
Dealing more than 1,700 consultations was just one of last year’s tasks for the Gardens Trust.
Read about the history behind one of California's most iconic buildings, the Griffith Observatory.
ICE examine just how close we are to providing subsidy-free low carbon electricity.
Have a look at MAD Architects' design proposal for renovating Montparnasse Tower into a concave mirror.
This article examines the legal issues behind off-site goods and materials.
Read about how technology is changing the real estate industry.
BRE Global introduce the first registration scheme for Suitably Qualified Security Specialists.
An introductory article to the different types of building foundations.
This unique Brutalist-era car park just off Oxford Street is soon to be demolished.