How to create a construction budget

 The first and foremost step when initiating a budget exercise is to identify the project stakeholder. This helps the team understand the parties that are likely to contribute to the project/product specification and deliverable acceptance during the project duration. A meeting to understand their involvement, influence and impact will help form the basis for the next step which is key to an accurate cost plan.

After estimating your costs, it is important to prioritise expenses based on the project requirements and available resources. This involves determining which expenses are essential and which can be deferred or eliminated. Project costs fall under two common categories: hard and soft costs. Hard costs encompass the actual physical construction of a building, the construction site, and the landscape whereas soft costs are less evident because they are often invisible. Prioritising expenses help ensure that the project stays within the budget and that funds are allocated appropriately.