How to Create a Construction Project Budget
Project budgeting can be frustrating and tiring—you have to take note of the resources' individual pricing and the labor costs. You also have to take note that the money should have an allowance in case of unexpected price surges. You will have to contact stores that sell the resources and ask for an estimate. Once you have the estimate, you will then submit a sample budget to the one who is in charge of the finances.
Aside from the resources, you will also be including the labor costs.
Your budget estimate or budget proposal should be all-encompassing. Below, we compiled helpful suggestions on how to craft your project budget:
1. Jot Down the Possible Expenses
You have to jot down the possible construction expenses first. These expenses include the resources and the labor costs. When it comes to the resources, you will have to ask for an estimate from stores regarding their pricing. For the labor costs, you have to determine if their materials are already included in the cost.
If this is your first time making a simple budget, then refer to previous budget for reference.
2. Ask for Help
Don't be afraid to ask for help especially if you are having difficulties making your project budget. You may ask help from a resource person or an expert (from Accounting department) to help you out. Through their one-on-one assistance, you will be guided step-by-step about the standard budgeting.
3. Use Templates
We know making a printable budget can be very difficult. That's why we advise you to use our budget templates with suggestive headings and content. Our templates can both be edited through Google Sheets and Microsoft Excel—two programs that contain spreadsheets that are perfect for budgeting. Modify our templates to fit your company's format standards in budgeting.
4. Include Notes
To avoid forgetting an important task, you have to provide a designated note (if necessary). These notes are small tasks that need to be followed up. For example, "Follow up XYZ Company for the pricing of abc." This way, you will avoid forgetting anything. The notes should be very noticeable—you may indicate the note this using a different font color.
5. Proofread Your Budget
Once the budgeting has been made, don't forget to proofread afterward. Check if the figures are accurate and make sure that you aren't forgetting anything. Documents containing quantitative information should be free from errors because it involves money. Group them into categories: materials, labor costs, etc.
6. Submit to Your Immediate Head
Once you are sure that the construction budget is final, submit the report for approval. Secure yourself a hard copy and a soft copy in case your immediate head has questions (or corrections). You should be able to update it real time to ensure accuracy. If he or she wants you to work on the corrections, then do it immediately. Once done, submit the revised copy to your immediate head for the final approval.
Creating your budget can be extremely risky—that's why don't hesitate to ask for help or use old previous budget records as reference.