It is not possible to overemphasize the importance of the project budget, especially the first statement of probable construction cost – for it is this number, however tentative and however qualified, that everyone remembers.
The construction budget can arise in different ways.
- It may be a number derived from the project’s program and schedule requirements;
- It may be calculated “backwards” from the financial proforma, taking into account the targeted market, interest rates and other variables.
- A client may set an initial budget, its accuracy to be proven during the design development process.
Professional references of cost per square foot for similar projects are one valuable resource.
Another valuable tool is a formatted Preliminary Project Budget with itemization of the broad scope of work items comprising the project.
Robert A Harris Architect is poised to assist clients in any of the above-mentioned budget development methods.