The construction budget contains several types of information about a construction project, mainly financial.
It is from this that it is possible to estimate and define the costs required for its execution.
Much more than a bureaucracy, the construction budget is a valuable document for construction, even though it is relegated by several companies.
To the point that, in many cases, work has already begun without even having a defined budget.
The important thing is to understand that a work does not occur in a homogeneous way, even in similar projects.
Costs vary and conditions change every day, often driven by external factors. Being prepared, therefore, is the minimum for companies seeking financial efficiency and cost control.
It is a guarantee for good construction management .
However, efficient budgeting requires a lot of data and detailed methodologies. It's not just about estimates in a spreadsheet.
But an assertive and proactive control of the services, materials and equipment necessary for the success of the work.
If you want to know more about the importance of this practice and how to budget the work , continue reading this article to find out!
What is a construction budget?
An essential part of project planning , the construction budget is a document that aims to correctly predict and control the costs related to the completion of a construction.
That is, the budget not only defines a “rule” to limit spending, but also serves as support in cost control during the progress of the project.
After all, the construction budget is a document that new zealand whatsapp data takes into account various aspects of construction and the company, and is therefore essential for efficient construction management.
That is, the values defined there are not withdrawn based on a holistic calculation.
On the contrary, the budget for works is based on a series of factors, such as:
the financial conditions of the company;
workforce values;
material costs (which are generally volatile);
and even natural legislative obligations on the type of work.
Thus, he stands out as a true right-hand man for the good management of the works.
This is also a point worth reinforcing:
The construction budget is a document that is often neglected due to its level of detail. However, it is precisely the analytical depth that makes it so effective and important.
And perhaps it is because of the lack of interest of companies in the matter that the losses are so considerable.
That's right, losses that affect all construction and development companies in the world.
Data from the IMF (Fail Management Institute , one of the world's most influential construction consultancies) show that around 90% of the world's infrastructure projects are victims of delays and budget overruns.
That is to say, almost all construction projects in the world can experience budgetary bursts.
This is mainly due to the fact that the budget is not made or managed in the best way. A mistake that can cost a lot .
How does a construction budget work?
The budget for the works is the result of the joint work of several sectors involved in the work. Below is how we discuss each of them in detail:
Purchasing : Area that evaluates suppliers and service providers, maintaining an active portfolio of business partners. This avoids exclusive dependence on a single supplier.
Planning : The planning team is responsible for reconciling all stages of the project with a financial perspective, which takes into account logistics, construction techniques and the schedule. It gives a more global aspect to the budget, better dimensioning the costs.
Site Engineer(s) : Finally, input from project and construction site managers is crucial to understanding their decision-making, working and management style. Their input can benefit the budget, avoiding unnecessary costs and work.
Therefore, with detailed and joint work, it is possible to correctly determine the costs of work , understanding what resources will be needed.
Therefore, it is possible to define a viable profit margin.
The construction budget is a tool that gives greater autonomy to the construction or development company, since there is great power of cost predictability.
Thus, the company has greater capacity to negotiate with suppliers, assertively controlling investments.