Project Budgeting in Construction with ParsCo Construction – Pensacola, FLJune 25, 2014
Stuff costs money. Construction is stuff. Design is stuff. Clients want stuff. Building costs money. Clients have money. Designers and Contractors need to be upfront about costs and have candid discussions throughout the life of the project. Costs change, selections change, issues come up, revisions are made, etc… All of these budget issues need to be continually addressed and it can often be a moving a target.
We’re not going to discuss specific costs; there are far too many variables- project location, quality, schedule, materials, design, type of project, etc. The budget pricing items below are not all inclusive, but rather a general listing of the typical items to be included in the budgets.
It is important to note the difference between the Construction Budget and the Project Budget.
The Construction Budget typically includes:
â€˘ Providing utilities to the site if not currently present
â€˘ Site Preparation (clearing away trees, stabilizing soil, cutting and filling to grade the site, etc.)
â€˘ Demolition as may be required
â€˘ Construction costs, including foundation, framing, electrical, mechanical, plumbing, interior finishes, exterior finishes, lighting, cabinetry, appliances, etc.
â€˘ Construction Management Fees and Site Superintendant Fees
â€˘ Sales tax, permitting, and insurance costs
â€˘ Hardscape (exterior built items i.e. sidewalks, driveways, patio’s pools, etc.)
The Project Budget typically includes all of the above in addition to the following:
â€˘ Architect fees
â€˘ Professional Services fees (interior designer, structural engineer, landscape architect, etc.)
â€˘ Land Costs
â€˘ Financing Costs
â€˘ Water + sewer tap fees
â€˘ Construction Costs
â€˘ Contingency monies
Often when working with a customer, it is difficult to find out what the “Project Budget” is and or the “Construction Budget”.Â It is normal to be apprehensive and not want to share this information because the client may feel that they want to save as much as possible and divulging that info will give the contractor or architect every opportunity to use the money up.Â This is not the case though when you work with ParsCo.Â When the client shares the “Project and Construction” budget information with ParsCo, we are able to immediately determine how to best utilize the money to accomplish the client’s goal.Â This is a team approach and if ParsCo is hired early on, we work with the client to hire the design team and develop an accurate budget for each item to make the project a reality.Â
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