The most common method of estimating the construction budget costs is categorizing costs into hard or soft costs. Therefore, when contractors calculate their construction budget estimates, they can adopt either of the following methods of budgeting

In construction, there are different types of costs associated with a construction project. They include Ĭategorizing Costs of a Construction Project There are six fundamental phases from the pre-construction stage up to the completion of a project. This ensures productivity and efficiency are enhanced while the cost estimates remain within limits.Ĭompleting a construction project is achieved in phases that together make up the construction project life cycle. A construction budget template becomes important in ensuring resources are appropriately distributed and act as proof of allocation to the client or developer.Ī construction budget is used in optimizing project execution by outlining the level of skill, type of technology, and equipment required at every phase of the project cycle.

Developers such as a government body, bank, or private investor are only interested in projects with tangible and/or intangible returns/benefits, and if the profitability cannot be proven, they will more than likely not invest in the project.Īccounting is vital in project management.

Therefore, contractors use a construction budget template as a guide to ensure they meet deadlines and avoid going overboard in terms of costs and schedule.Ī construction budget template is also used to define the project’s scope therefore, the contractors and developers can anticipate the total costs associated with the project and ensure the project’s benefits outweigh the costs. Construction projects are time and cost-sensitive. Through a construction budget, contractors can break down the cost implications of each stage of the project cycle.Ī construction budget is an important management tool that helps contractors plan and organizes different construction requirements. A construction budget template is a document that contractors can use to create a construction budget to document a construction project’s financial and logistics aspects.

Contractor expenses template