PROJECT BUDGETS

This week one of the projects I am working on received some local press. The LDS Church is building some new training/classroom buildings to help with the increasing number of LDS missionaries through-out the world. These buildings will be built on the south side of the existing campus. There will some demoing of some existing BYU laundry and maintenance facilities to make way for this expansion. Below is a rendering of the exterior of the building, and the links to read more about the project.

exterior rendering looking at buildings exterior rendinging looking at mountain

site plan

Herald Extra Article

Deseret News Article

We are partnered on this project with an Architectural firm out of Portland called ZGF Architects. They are taking the lead on design for these new buildings which includes the interior work, but there have been many meetings and ideas shared by all parties to get us to this point.

When it comes to FF&E, FFKR has been requested to assist in selection and design with the interior designer from ZGF and then present these to the interior designer from the LDS church and when we have his support and buy off, we will present to the whole team. I was selected to work on this project because of my experience working with this client and incorporating their standards. I also have intimate experience with our software that we developed to create estimated budgets for clients and then as we begin to select products and materials, we can show their cost effect on the product in real-time.  Once we have this information we are able to work with the LDS church’s purchasing software to get the PO’s out to the manufacturing vendors.

The past couple weeks I have been spending portions of days creating an estimated budget and updating it as design scope changes. Once the design scope lands relatively stable, we submit that budget to the client’s Project Manager, and that locks us in to the moneys we can spend.  Once that budget has been established we move to a working budget and enter “real” numbers for actual selected product. Below is an example of what this type of budget would look like. Notice how as we move from an estimated to a working budget, quantities or cost amounts change, and then we show the increase or decrease from the estimated total.

budget

This kind of document is important information for a Project Manager and those that are responsible for the moneys of a project. This attached document shows that the working project budget is coming in higher than estimated. To keep on track, we would have to cut costs in some other locations.

While creating an estimated budget for this project,  I have had the difficult role of trying to land on a budget number that isn’t higher – or lower than a product’s/material’s actual costs. This matters because at the projects completion,  if you have come in significantly under budget – you may lose credibility or an Owners trust. If at completion you find yourself over budget, you will generally find that going back to the Owner is  not a good idea or even possible…thus, losing credibility or an Owners trust! Time and experience – or relying on someone who has the experience is the only solution to this difficult balancing act.

 

 

 

 

 

 

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