Ensuring that final costs remain within a specified budget is an important goal with every project we manage. It is critical to craft a realistic, complete, and accurate budget during the initial planning stages. We utilize a very extensive, detailed budget system with over 400 line items. Each line item represents either an actual bid or an estimate based on historical data, with an accompanying contingency figure derived from common standard deviations.

Our budgets consist of three different types of costs: fixed costs, variable costs, and allowances. Fixed costs are derived from known materials and labor costs, based on a specific set of plans, for various phases of construction, such as foundation, framing, and drywall. Variable costs fluctuate according to materials, manufacturer, and finish choices, and include items such as roofing, stonework, and windows. Allowances represent mutually acceptable amounts for specific finish items like appliances, fixtures, tile, and various accessories.

Timely and accurate budget tracking is essential to controlling costs. As projects progress, we continually review actual costs incurred versus planned costs. Budget oversight by all stakeholders, including the client, builder, loan officers, and escrow agents, is accomplished through a web-based accounting and notification system, in addition to personal conferences.