Essential Phases of Successful Construction Budgeting

Man on construction site with plans in hand

Whether constructing a new property or renovating an existing one, construction budgeting is generally a tremendous undertaking. In fact, even successful construction managers find setting proper project expectations challenging due to the possibility of having unforeseen hiccups. Nevertheless, you can ensure that your project hits your targets by dividing the project into the following phases while budgeting.

Phase 1: Discovery and analysis

Start the budgeting process by assembling a team. Essentially, you need help to plan your construction budget. Therefore, conduct some research and carefully analyze the requirements and goals of your construction project. Know why, how, and when to start the construction project. Once you have planned out all these, start working on the specifics. These include evaluation of the existing documentation and site condition. Assess the project limitations and resources. Make sure that you know the realistic limits and work within them. Additionally, find out about specific code and safety requirements as well as the required permits.

Phase 2: Design and develop

Determine the scope of your construction project. Meet the design consultants and the architect. Analyze potential work and creative options. Align all decision makers and stakeholders with the final design. Come up with a list of the required materials and get more assistance if necessary. Once you have factored all costs that will be involved, finalize your construction budget as well as the timeline then start getting bids from potential, competent contractors.

Phase 3: Pre-construction and documentation

This is where you seek approval of the design and construction budget. Essentially, make sure that all decision-makers understand your project and are ready to go ahead with it. This entails meeting all stakeholders, including contractors, designers, and architects to discuss your project in details. Assess potential issues and resolve them during the meeting. Additionally, keep documentations for regulation, permits, contracts, and deliverables organized. This will reduce or prevent frustration and keep the project running smoothly.

Phase 4: Construction and eventual closeout

Monitor the construction process and ensure that progress stays within your schedules and budget. Remember that you will face hurdles during the construction process. Therefore, work hard to address them. If there are changes that have to be made, make sure that they are noted and tracked. Identify problems and work them out before they escalate. Also align all stakeholders, including utilities, with your budget and schedules. Keep progress payments accurate, fair, and timely depending on the completed work. Finally, closeout the project and enjoy your hard work’s fruits.

Generally, a construction project is not easy to accomplish. Follow these phases to budget your project and ensure its smooth completion.