Overview · What & why
A decision, before a calculation.
The construction contract is only part of the capital required to deliver a project. Land, site work, professional fees, financing and contingency can be material. A complete budget uses consistent categories and clearly states scope exclusions. As information improves, allowances become priced commitments and the forecast should explain the change.
A concrete example
Riverton’s $2M land + $1.5M site + $7M building + $1.2M soft + $900K contingency + $900K preliminary carry equals $13.5M. Replacing the carry allowance with a calculated monthly interest amount must remove the original $900K.
What to remember
A complete, nonduplicated budget matters more than a precise-looking total.
Before using this in a project: Scope breakdown, quantity estimate, professional fees, financing assumptions and risk allowances.