What is a construction budget and what is a construction budget?

That is, it refers to the budget or cost of all the costs spent on the construction of a project

It is the cost of the project required by the construction unit or the construction unit for the drawings after a drawing is obtained.

The construction budget is the main basis for the preparation of the implementation cost plan, which is the technical and economic document of the labor, materials and construction machinery required for the construction of the unit project required by the construction enterprise in order to strengthen the internal economic accounting of the enterprise, under the control of the construction drawing budget, according to the internal construction quota of the enterprise, with the construction and installation unit project as the object, according to the construction drawings, construction quota, construction and acceptance specifications, standard atlas, and construction organization design (construction plan).

The construction budget is the internal document of the construction enterprise, and it is also the basis for the construction enterprise to carry out labor allocation, material planning, cost control, cost analysis and team economic accounting.

The contents of the construction budget include:

1. Quantity indicators of layered, sub-part, and sub-project projects;

2. Consumption indicators of labor, materials and machinery required for stratification, sub-parts and sub-projects;

3. The total consumption calculated according to the type of labor, the type of material and the type of machinery;

4. The labor cost, material cost and mechanical shift cost calculated according to the total consumption of labor, materials and machinery shifts, as well as the direct cost calculated according to the sub-project and the unit project.

The construction budget includes two categories: budget estimates and budgets, which are the general term for budget estimates and budgets. The differences between budget estimates and budgets are as follows:

1. The preparation unit is different: the budget estimate is prepared by the design unit or the cost consulting unit, while the design, construction and cost consulting units can prepare the budget.

3. The degree of accuracy is different: the budget estimate is generalized and the precision is not high, and the deviation from the actual is 5%-10%, while the budget is more detailed and accurate, and the deviation from the actual is 3%-5%.

4. The functions are different: the budget estimate is the basis for determining and controlling the investment amount of the project, the basis for the optimal design scheme, and the basis for the bidding and general contracting of the construction project; The budget is the basis for determining the cost of the unit project and the individual project, the basis for bidding, signing the construction contract and the completion settlement, and the basis for the bank to allocate the project price.

The project budget is a plan for the income and expenditure of the project in a certain period of time in the future. It can evaluate the investment of the project in the form of money and reflect the economic effect of the project. It is the basis for strengthening enterprise management, implementing economic accounting, assessing project costs, and preparing construction plans; It is also the main basis for project bidding and determining the cost of the project.

In view of these two complementary aspects of the operational budget, there are two basic approaches to budgeting:

1) Periodic Budget: In this budget, a plan is made for the next fiscal year that will be the least changed over time. In general, the expected total cost per year is amortized over the course of the year on a monthly, factor-cost basis.

In this way, the monthly "salary" is simply amortized over each month as 1 12 of the expected costs, while the seasonal fluctuations in sales require a little more attention to marketing and production costs and changes in costs in the course of fluctuations.

2) Continuous (rolling) budget: In this budget, a pilot annual plan is prepared, in which the first quarter is prepared in detail by month, the second and third quarters are relatively brief, and the plan for the fourth quarter has only a rough outline, and every month (or perhaps quarterly) the budget is revised by adding the details required by the next month (or quarter) and adding a new month (quarter), so that the plan is extended into one year, This budgeting process is responsive to changes in the environment and the impact of some uncertainties.

There are three methods of construction budget: physical chain method, physical amount method, and unit valuation method. Lee.

1. Physical law.

According to the construction drawings and construction quota, combined with the construction organization design or the construction technical measures determined by the construction plan, after calculating the engineering quantity, the construction quota is applied, the quantity of labor and materials is analyzed and summarized, and the economic effect is reflected through the physical consumption quantity. (as shown in the image below).

2. Physical amount method.

A method of calculating labor, material, and direct costs by physical quantities. (as shown in the figure below) 3. Unit valuation method.

According to the relevant provisions of the construction drawings and construction quotas, combined with the construction technical measures, the project is listed, the engineering quantity is calculated, the unit price of the construction quota is applied, the direct cost is summarized after the calculation is calculated item by item, and the labor and main material consumption are analyzed and summarized, and the detailed list is listed at the same time, and finally compiled into a book. (as shown in the image below).

Construction Budget Formula:

1. Equipment transportation and miscellaneous expenses = original price of equipment equipment transportation and miscellaneous rates. Shed disturbance.

2. Processing fee = total weight of equipment Processing fee per ton of equipment.

3. Auxiliary material cost = total weight of equipment Auxiliary material cost index. <>