In construction, preliminary budgeting is a crucial early step in planning a project that helps define its financial feasibility and scope. When a department desires new equipment, for instance, the organization’s finance and capital planning committee will want to see a business plan that outlines details of the purchase, usually including information on an expected return on investment (ROI). Often, individual units or divisions struggle in assembling such a package, as they don’t have the necessary resources or knowledge.
We at Beeler Construction can become an extension of a department’s planning, putting together the needed data and documentation regarding construction costs, for the group to then submit. In this way, we offer preconstruction services, with the key success step being to ask the right questions and reduce a potential client’s needs upfront.
To get the correct scope of a project, we want to fully vet a prospective client’s needs early in the process, making precise inquiries of the right people. Some contractors may develop an estimated cost based on a project’s square footage alone or using only parts of the equation—and then a client ends up paying more because initial planning was not thoroughly completed.
Within every division of a project, we can rely on our established partners and long-term subcontractor relationships to obtain quality budget proposals. We value accuracy, and we utilize our expertise to figure out a project’s pain points. Knowing that projects may not happen for years, we account for factors like inflation or scope changes in the preliminary budgets we create.
Other contractors often offer rough order of magnitude (ROM) estimates. There is a time and place for this depending on the stage of a project. But using historical and limited project information and assumptions, these figures have a wide accuracy range and are inflexible to change. Rather than waiting for a project to be approved and only then taking a deep dive into the details, at Beeler, we do a comprehensive review at the start, yielding much more accurate results.
In the preliminary budgets we assemble, a department or unit will receive options, from the complete project to portions of it. When these groups move forward with a Beeler estimate, they can be confident that their budgets reflect actual anticipated project costs. We’d love to assist your business or division in securing capital funding—send us a note or give us a call to learn more.