Construction budgets are great diagnostic tools for taking a quick look under the hood.
Are you getting the most of your budgets?
- Phases and transitions
- From estimating to planned execution to tracking
- Need a detailed section for tracking self-perform and labor items
- Budget needs to be set up for proper tracking
- Subcontracts and purchase orders
- Track committed costs (PO / subcontract amount) and billed to date
- Committed costs provide a big picture view and invoiced to date gives more detail of progress
- Add to project budget dashboard – track % billed to date versus planned, % complete by time and by costs
- Self-perform and labor items
- Use a second more detailed budget to track these items and summarize on dashboard
- Create a budget with planned and actual by time unit like Weeks or Months or Days depending on your project
- Create key tracking metrics for each line item like “Pipe Installed” so that you can track % utilized versus % complete, etc. – use daily production sheets for details from the field
For project managers a good budget is like blood test results for a doctor. It gives us a quick snapshot of what is going on inside and where we might have problems.
Set up a proper budgeting system for your projects