Construction Budgeting 101

Budgeting can be challenging for construction and restoration project managers, namely because unexpected problems routinely crop up, and because it’s easy to mistakenly neglect to add certain requirements to the budget. You may find, for example, that tube and clamp scaffolding isn’t enough by itself, and that your workers also need personnel and material hoists. It’s best to err on the side of caution and take more time than you think you’ll need to develop a comprehensive budget.

Site Costs

You can break your budget down into categories, including site costs. Your site costs will include the following types of expenses:

  • Land surveys
  • Environmental compliance measures
  • Federal, state, county, and city code compliance
  • Demolition of existing structures
  • Inspections

Soft Costs

Soft costs include any expenses that are neither directly for the actual construction, nor for site preparation. Taxes, workers’ compensation, general liability insurance, and LEED certifications are examples of soft costs. Others include the following:

  • Interest from financing
  • Legal fees
  • Design fees

Hard Costs

The hard costs of a construction or restoration project include everything pertaining to the actual construction activities. These expenses can include excavation and the installation of shoring systems, scaffolding rentals and their set-up, and personnel and material hoists. Hard costs also include the following:

  • Estimated cost of labor
  • Rental or purchase of heavy machinery
  • Rental or purchase of power tools
  • Cost of all materials
  • HVAC costs
  • Plumbing
  • Windows and doors
  • Electrical
  • Mechanical costs

Don’t forget to add in the cost of debris removal and disposal.

Contingency Expenses

Seasoned builders add a little wiggle room into their project budgets for unexpected expenses. If it’s a restoration project, some commonly encountered unexpected expenses include the remediation of dry rot and mold. Other unexpected costs can arise from the following:

  • Incomplete designs
  • Changes to the plans during construction
  • Delayed completion and extra labor costs

Builders throughout the Washington, D.C. area rely on Scaffold Resource to provide expert engineering guidance, top-notch products, and competitive pricing. We’re known for our award-winning safety record. You can direct your questions about shoring erection and scaffolding rentals to a friendly representative at (301) 924-7223.

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