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Last edited 11 May 2021
Construction project funding
Funding is the means by which financial resources, typically capital, but sometimes also time, skills, land, information, etc., are provided for the purposes of a construction project. Funding tends to refer to reserves that are internal to the organisation, while the external sourcing of capital is referred to as financing (although the terms are sometimes used as if they are interchangeable).
Public projects can be funded by allocating the necessary amounts from departmental and/or local budgets. If the project crosses more than one departmental budget then the project sponsor is generally responsible for securing project funds by working with different budget holders.
Funding can come from reserves that are already allocated to capital expenditure (capex), which results in the acquisition, construction or enhancement of significant fixed assets including land, buildings and equipment that will be of use or benefit for more than one financial year. For more information, see Capex.
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