How to Make a Construction Budget [5+ Templates to Download]
If one were to start a construction project, then it is important to learn how to properly budget to ensure the project’s completion. If you are in charge of handling the budgeting, then you’ll want to create a construction budget document. This article will teach you all that you need to know in order to make one.
7 Steps for Creating a Construction Budget
Step 1: Know What Should Go Into the Budget
Before you can get started, you must first learn what it is that you should go into the construction budget. These would be all of the items that you need to keep track of that will ensure that the project is able to start and finish. A few good examples would be the cost of construction, planning costs, insurance, and even a contingency budget.
Step 2: Gather the Documents
To make sure that you can come up with the most accurate projections possible, you will want to make use of any financial statements that are in line with the construction project. These include everything from receipts gained from purchasing resources or payment slips acquired from renting out properties.
Step 3: Do Your Research
Just like any other project, doing research is important as the information you stand to gain will help you with your budgeting. It’s here where you will need to learn the goals of the construction project and what it will require in order to reach those goals. Knowing that should tell you about the possible expenses that need to be made.
Step 4: List of Materials and Costs
It is here where you will need to make something that’s akin to a price list where it details all of the different materials that need to be spent on. This is very important as it will give you an estimate of the total cost of the entire construction project. Remember that it helps for you to make use of any financial statements that are related to the project.
Step 5: Consider the Possible Issues
There is no doubt that there is always the possibility that something could go wrong during the construction project. It is best that you think about what these issues could be and how they can affect the project. Knowing what they are can help you plan out any extra funds that may be needed.
Step 6: Come Up With a Contingency Budget
In the event that there are any change orders or additional costs that could affect the construction project, then the money needed for these changes would be drawn from the contingency budget. While a typical contingency rate is between 5%-15%, it usually depends on one’s level of comfort.
Step 7: Manage Your Construction Budget
Once you’re done listing down all of the things that need to be spent on and the possible total amount of expenses, then all you need to do is to manage the budget until the end of the project. Just make sure that the project finishes its objectives on time and that everything spent on is in line with the budget made.
5+ Construction Budget Templates
1. Home Construction Budget Template
There will come a time where a contractor may be required to start constructing a home for a client. When that happens, it’s best to have a home construction budget ready. This template will help you make such a document and it can help guarantee that you can use it to detail all manners regarding home construction finance.
2. Commercial Construction Budget Sample
When the time comes that you have to come up with a budget for commercial-related purposes, then know that this template is always available for you to download. It should help you make a document which points out everything from the total amount of both income and expense to prices of every item listed down.
3. Residential Construction Budget Template
Construction projects in residential areas are not things to be taken lightly. These would require the contractors to take note of all the things that need to be spent on to successfully finish the project. With this template, one can make a budget that is sure to keep track of all expenses that have to be made.
4. Construction Project Budget Template
Construction projects happen on a nearly daily basis. This means that nearly every day, contractors will be required to know the budget of the project that they’re working on. With this construction project budget template, the contractor will have an easier time determining how much is needed and what is needed to complete the task he/she has been given.
5. Free Construction Budget Template
If you are looking for a construction budget template that you can access and download for free, then this is the template for you. It is best that you know that you can use programs such as Microsoft Excel, Microsoft Word, Apple Pages and even Google Docs to open and make changes to the template.
6. Construction Budget Guide Sample
In the event that you are having trouble figuring out how to go about in making your construction budget, then this is the template you’ll need. With it, you can guide both yourself and others in regards to how they should plan the construction budget, what should go in it, and how to make it.