Building a new home or renovating one gives the owner multiple benefits. In the long term, the homeowner saves on costs and their property increases in value. The budget for home remodels, or construction can be high. With proper planning, the homeowner can manage to construct or remodel any type of home.
- 1 Construction Budget Templates
- 2 What is a home building budget spreadsheet?
- 3 Renovation Budget Templates
- 4 Why is a construction budget important?
- 5 Home Building Budget Spreadsheets
- 6 What is included in construction costs?
- 7 How do you manage a construction budget?
- 8 Remodel Budget Templates
- 9 How do you create a construction budget?
- 10 Budget for specific costs
The most important thing in any type of construction is a construction budget. It helps the homeowner to know how much money they need. It helps them to plan for funding from different sources. A home building cost breakdown spreadsheet is important during the budgeting process.
Construction Budget Templates
What is a home building budget spreadsheet?
Even when you have the best designs and planning, a construction project can never kick off without money. Once the money becomes available, the entire construction process begins to roll. The homeowner needs to prepare the budget in advance before making any further arrangements. The home building cost breakdown spreadsheet helps them break down the costs per item.
A home building budget spreadsheet is a document that shows the estimated costs for construction. The budget is proportional to the type of building the homeowner wants. If they want to remodel a specific room, they will require a renovation budget template. The budget covers costs from the start of the project to its completion.
The project plan is important in helping the project manager determine everything that is required in the process. They should leave space for budget adjustments because the exact costs mostly begin to show once the project starts.
Renovation Budget Templates
Why is a construction budget important?
A construction manager focuses on ensuring the construction project is successful. They ensure they use the recommended material quality and that the project is completed within the set time. The home building cost breakdown spreadsheet helps to ensure all the work is done within the budget. It provides the homeowner with the following benefits.
- It helps in the decision-making process. Every homeowner would love to build or remodel their home using the best available materials. They would love to see their homes look luxurious. Unfortunately, this is determined by the available money. If the homeowner wants to remodel their kitchen, a remodel budget template will help them budget for the available money. When deciding which cabinets to buy, the tiles to use, or the kitchen tops to install, the number one determinant is the available budget.
- It helps with getting funding sources. The homeowner might not have all the money required to construct a new home or remodel a room. If they need to source funding, the funders will first ask for the budget. The home building budget spreadsheet makes it easier for the homeowner to plan and prepare the budget so that it becomes available to anyone who might need to view it.
- It helps with managing the construction project. When a homeowner hires a project manager, they must give them the tentative budget for the project. The manager uses the budget as the baseline for planning what each project phase will spend. It will help them determine how many workers will be required, the material quality, and the timelines.
- It helps construction managers to prioritize. A remodel budget template shows the money available for remodeling a home. The money might not be enough to complete the entire remodel. If the construction manager realizes the money is not enough at the moment, they can first work on the priority areas as they wait for the homeowner to source more money.
- It helps project managers to hire the right skills. Different types of construction experts charge differently for their services. The more experienced experts might have higher charges compared to others. If the manager hires a highly experienced expert, they might affect the budget and make the construction work stop. Sometimes they might only afford to hire the expert for a specific number of days. The home building cost breakdown spreadsheet helps plan for the people to hire and how long they can afford to hire them.
- Prevents the project from stalling. Without a budget, a construction project can stall at any time. The homeowner may incur huge debts from suppliers that they cannot afford to pay. This could lead to court battles which could see the homeowner lose their property. Such challenges can be avoided if the property owner prepares a construction budget in advance.
Home Building Budget Spreadsheets
What is included in construction costs?
Every construction project includes direct and indirect costs. Direct costs are the types of costs directly related to the construction work. These are costs like materials, workers, and land. Indirect costs are the costs that help the project to stay on course.
These are services like legal, accounting, travel, marketing, and accommodation. When preparing a home building budget spreadsheet, the homeowner should consider these two types of costs. Here are the costs they should include.
Cost of materials
Mostly, construction material takes the biggest chunk of the costs. These are items without which the project cannot become successful. They could be the natural materials like:
They can also be the factory manufactured materials such as:
The budget must cover all the materials required for the construction project from the start to completion.
Cost of labor
The cost of labor covers the budget required to hire workers for the construction project. Different types of people can be involved in the project, such as:
- Construction inspectors
- Construction managers
- Flooring specialists
- Tile setters
- Roofing experts
- Construction workers
- Concrete finishers
- Crane operators
- Civil engineer
Travel costs: Travel costs are connected with expenditure when:
- Sourcing for materials
- Commuting to the project site
- Hiring vehicles for materials transportation
- Motor vehicle repairs
Most construction sites rent a temporary office site nearby. Some people may construct a temporary structure and use it as an official site. The temporary site office requires budgeting for:
Legal services and vendor fees
There are other key services that a construction project requires to run smoothly.
- An accountant helps to make sure the project is operating within budget
- A lawyer handles all the legal issues that arise
- Vendors who provide services need to be paid in time
All these are key items that must be included in the home building cost breakdown spreadsheet to ensure the project runs smoothly. The homeowner may be required to consult with the project manager to ensure nothing important in the budget is left out.
How do you manage a construction budget?
Construction budget management is often a big challenge to many project managers and homeowners. It takes discipline to stay within the estimates contained in the remodel budget template. Here are tips to help you manage your construction budget.
Do accurate estimation
It might not be possible to accurately estimate the exact cost of construction. However, you should try the best you can to bring the cost estimation to the real cost as close as possible. Your priority should be to set your expectations properly. It might help to request multiple quotations from suppliers and contractors. Use the bids to help you estimate the best cost for your project.
Make the budget realistic
It is easy to overestimate or underestimate the budget. It helps to make realistic estimates but also to allow space for adjustments. This is one of the reasons why using a home building budget spreadsheet is critical in the budgeting process. Apart from making realistic budget estimates, it also helps the construction team with a baseline for referring to whether they are off track or still within budget.
Keep the costs in control all through
A good construction manager keeps the entire budget under control from the first day the project starts. They record all expenditures from the first day and keep daily records. Once in a while, there could be problems due to delays and unpredicted challenges. Nevertheless, these challenges can be covered by the miscellaneous budget. Everything else that had been budgeted should be kept under control.
Prepare frequent reports
The project manager must maintain transparency throughout the project life. They can do so by generating reports and availing to the concerned stakeholders. The report should include the following details:
- Total money spent this far
- What is has been spent on (List of expenditures)
- Project status
- Projected progress
Do a budget review afterward
It is always good practice for project managers to revisit the budget after the completion of the project. It helps them to know where they did things right and where they failed. It helps them get better ideas on how they will deal with the next project they get.
Remodel Budget Templates
How do you create a construction budget?
It takes more than one person to prepare a successful construction budget. Building or remodeling projects require a lot of input from different people. The estimates you make should be close to the real budget to prevent your project from stalling. Follow these steps to create a construction budget.
Do thorough research
It is easier to prepare a construction budget if you do it from a knowledge point of view. Gather as much information as you can by searching online and consulting with the right people. A construction manager is a key person in your project budgeting. Keep in constant consultation with them. You may also consult with your lawyer to know the cost of the legal aspect of the project. Other people that you can consult are accountants, material suppliers, and people who have completed similar construction projects recently.
Write your budget considerations
The cost of one project will vary from the cost of another. It depends on the size of the project, scope of work, and type of project. However, there are specific budget considerations that will be the same for every type of project. Consider the following key budget areas:
- Cost of permits – The project may require different permits like electrical permits, mechanical, environmental, plumbing, and zonal permit.
- Miscellaneous budget: The estimated budget can either go over or under. In case it goes over, you should have a miscellaneous budget to take care of the over expenditures.
- Cost of insurance: The construction project owner may incur huge liabilities due to injuries. It is necessary to have general liability insurance during the project’s lifetime.
- Costs for the project foundation. Costs related to the foundation can include excavation, stabilizing the ground, and laying steel and slab. If the soil is weak, the foundation may cost more than when the foundation has a rock base.
- Cost of the exteriors: The cost of exteriors can include construction of the walls, building design, windows, doors, and insulation.
- Cost of interiors: The cost for the interiors will include all costs related to finishing and furnishing. These can be costs such as painting, flooring, furniture, toilets, cabinets, etc.
- Heating, ventilation, and air conditioning: The homeowner should consult with an HVAC expert to determine the cost of installing the system.
Budget for specific costs
Begin preparing a budget for specific costs as follows:
Purchase of property
The cost of property depends on multiple factors like location, demand, and supply. It can take up to 50% of your cost.
Fees and services
There are various fees that you will incur during the consultation phase. The local government must issue a building occupancy permit. There will be other fees like:
- Surveyor’s fee
- Soil testing
- Architectural design
Cost of materials
List all the material required for the entire project. These can be sand, cement, steel, pipes, shingles, nails, grills, etc.
The cost of labor may vary from one project to the next. Construction workers are usually paid per hour. List the labor costs according to professionalism. Have a cost for the engineer, project manager, roofing expert, flooring expert, electrician, etc.
Tools and equipment
Prepare costs for buying or renting tools and equipment. The associated costs include fuel costs, delivery, operating, maintenance, repairs, and transporting.
Costs for managing the project
There are several costs for managing the project from the start to its completion. Set aside a budget for this purpose. Other associated costs are taxes, utilities, and contingency.