3.3 Issues Associated With Project Budgeting
Similar to project scheduling, budgeting is often created in the preconstruction stage but neglected or forgotten throughout the duration of the project. This results in a budget that is not always updated or adjusted as new cost or expenses arise. With new cost the budget will have to be shifted around to accommodate for the increase in cost, without updating cost it becomes difficult to meet the goals set in the budget especially since cost are not directly accounted for towards a particular task in the budget. There should be a focus on creating a budget in the preconstruction stage but also maintaining that budget and keeping it update even throughout the construction stages. Doing so will allow goals in terms of cost to be met easier.
With budgeting it becomes difficult to estimate or predict cost in order to create a budget. Budgeting relies on predicting the cost of task or resources in advance in order to be effective. In …show more content…
In many cases companies issue a tender to over 10 trades for 1 scope of work. It becomes difficult to track and even decide on who should be awarded the job. When scoring trades based on set criteria multiple trades may have the same score and deciding on whom to go with becomes an issue. This makes the entire process time consuming when a project manager must compare multiple quotes on one scope of work especially since projects tend to have 20 or more task that require different contractors. Opposed to the traditional way of getting one contractor to price the job comparing quotes can take anywhere from a 1-3 weeks depending on the scale. It is also very difficult to select criteria that will accurately evaluate a good trade but will not be bias (The Constructor, 2014). This will also increase the time needed in the tendering
Similar to project scheduling, budgeting is often created in the preconstruction stage but neglected or forgotten throughout the duration of the project. This results in a budget that is not always updated or adjusted as new cost or expenses arise. With new cost the budget will have to be shifted around to accommodate for the increase in cost, without updating cost it becomes difficult to meet the goals set in the budget especially since cost are not directly accounted for towards a particular task in the budget. There should be a focus on creating a budget in the preconstruction stage but also maintaining that budget and keeping it update even throughout the construction stages. Doing so will allow goals in terms of cost to be met easier.
With budgeting it becomes difficult to estimate or predict cost in order to create a budget. Budgeting relies on predicting the cost of task or resources in advance in order to be effective. In …show more content…
In many cases companies issue a tender to over 10 trades for 1 scope of work. It becomes difficult to track and even decide on who should be awarded the job. When scoring trades based on set criteria multiple trades may have the same score and deciding on whom to go with becomes an issue. This makes the entire process time consuming when a project manager must compare multiple quotes on one scope of work especially since projects tend to have 20 or more task that require different contractors. Opposed to the traditional way of getting one contractor to price the job comparing quotes can take anywhere from a 1-3 weeks depending on the scale. It is also very difficult to select criteria that will accurately evaluate a good trade but will not be bias (The Constructor, 2014). This will also increase the time needed in the tendering