A cost- volume-profit CVP analysis will be completed in order to determine the breakeven point. Relevant costs will be used to prepare a flexible budget. Additionally, an appropriate costing system should be selected and the choice should be substantiated with reasonable rationale.
Project Budgeting Typical costs The following items typically appear in Total Project Cost estimates for new construction and renovation projects: These costs are associated with project implementation, including consultant services, surveys, testing, printing costs, and miscellaneous reimbursable costs.
The largest components of these costs are typically the architect and engineers fees and other professional consultants. Depending on the project specifics, soft costs may include land surveys, soil testing, and specialty consultants such as lab planners, wind tunnel experts, and acoustical engineers.
In developing a project budget, Facilities relies on the knowledge base of past projects of similar size and scope to create an estimate for soft costs.
Construction costs include labor, material, equipment, general requirements, contractor's overhead, and mark-up.
Projects are typically submitted to a competitive pool of pre-qualified contractors for a lump sum bid. Construction costs also may include temporary utilities, fencing, temporary partitions, and other items required by to ensure safety and minimize occupant disruptions.
Other owner contracted work: Depending on the project specifics, Facilities may award separate contracts for temporary relocations, demolition, abatement, and utility relocations required prior to the start of construction. Furniture is typically not included in the general contractor's bid.
Furniture is purchased through furniture dealers or direct from the manufacturer. Loose equipment is purchased separately from the construction contract. Moving costs for offices and labs associated with renovations, new construction, and temporary relocations are included in the project budget.
In rare circumstances, project budgets will include the cost of temporary storage of furniture or equipment during renovations.
Building permit fees and other regulatory fees are included in the project budget. The cost of regulatory fees is unknown until calculated by a specific regulatory agency at the time of permit issuance. The City of Evanston will increase the permit fees at the end of construction to reflect any change orders issued to the general contractor.
The final costs are determined long after building occupancy. Facilities projects fees within the budget based on experience. FO charges include the costs of any time or materials spent by the Facilities Operations shops in conjunction with the project.
These costs range from cutting keys, providing access to equipment rooms, assisting in utility shut downsand reviewing design drawings for conformance with University standards. Facilities assesses a graduated fee to cover project management expenses and Facilities overhead on all projects.
Learn more about project management fees. There is no way that every risk can be fully calculated or anticipated. A contingency amount is added to a project budget as an insurance policy to cover the two types of risks: Examples of elements Design change: Changes in the design can be due to things such as alternate construction methods, product substitutions, unanticipated code revisions, and contractor proposed cost savings.
Conditions that couldn't have been identified during the design of the project, such as concealed conditions on a renovation project, sub-surface conditions, unknown hazardous materials such as lead or asbestos, and changes related to abnormal weather conditions.
Changes as a result of unit prices that were included on the bid in anticipation of unknown conditions would also be included.
These are often items of change that are considered errors or omissions on the part of the architect or his consultants. This would include lack of coordination between various disciplines in the documents, design elements which do not comply with University standards, inadequate detail on the documents, and failure to comply with codes.
These changes are a result of items required in order to accommodate the operations and policies of the University and not a request by the client.
This would include items caused by a change in the University's construction standards, new technology in areas such as telecommunications, requests by Risk Management, Research Safety, or University Police.
Total project contingency is tracked as a separate line item and may be used to cover budget overages in any of the separate budget object codes caused by unforeseen conditions. At the end of a project, all unused contingency and project funds are returned to the funding source.
The Facilities project manager handles the project contingency. The project contingency is not intended to be used to fund client-requested program scope changes.
These changes must be funded through separately identified funding or approved budget increases. Change requests - Cost proposals forwarded by the contractor in response to change requests are typically itemized to into the following categories: Multiple change requests are accumulated and combined into contract change orders.
This process is standard in the industry and reduces project paperwork.
Learn more about client-requested scope changes.The budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget: the operating or current budget, the capital or investment budget, and the cash or cash flow budget.
In order for budgeting to really work, we must link the budgeting process with: a. Financial Statements The ability to postpone, delay, alter or abandon a project adds value to the project.
This value is referred to as: Relevant cash flows. Answers to Final Exams – Short Courses located at www. This%project’budget Microsoft Word - Sample Project Budget grupobittia.com Author: Olivia Roanhorse Created Date: 9/13/ PM.
The final thing to do is to get your manager or project sponsor to approve your budget. Talk to them about how you put it together and what elements make up your overall budget. That’s it! This%project’budget Microsoft Word - Sample Project Budget grupobittia.com Author: Olivia Roanhorse Created Date: 9/13/ PM.
Final Project: Budgeting Budgeting is used to help companies stay on track without going over their revenue and not spending too much on expenses.
Budgeting is a .