Why you need a budget

Starting a construction project without a realistic cost estimate is one of the worst mistakes an Owner can make.  I have seen countless projects doomed for failure because the Owner’s vision was greater than their budget.

This does note need to be so!

In my newest article “Why you need a budget“, I discuss the differences between a budget and a spending limit and the three things and Owner can do if their vision exceeds what they can afford.

Here is an excerpt from the article:

So you have decided to take on a construction project.  You have a clear vision of what you want and you have a dollar limit in mind for the work.  Are you ready to move to the next level?

If the dollar limit you have for your project is not based on a construction cost estimate the answer is no!

It is important to note that a construction cost estimate and a spending limit are not necessarily the same.

Your budget should not be based simply on how much money you have available.  Your budget should be based on a well-developed estimate that meets the scope of work you want.

Click here to continue reading

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