Project Budget
The project budget module calculates cost-based fixed-fee project budgets using the rates and multipliers from the profit plan. Click on Project Budget to view the MS-Excel spreadsheet file. The profit plan rates and multipliers used by the project budget include:
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average direct labor rate;
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overhead rate and
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profit rate on direct labor.
The key indicators for the project budget are calculated and compared to the profit plan.
The fee based on service value is calculated and compared to the cost-based fee. The cost-based fee can be adjusted to the service value fee to get the full value of the service provided. The service value fee may be based on percentage of construction cost or other unit of design such as per square foot or rooms, etc.
The profit plan effective multiplier serves as the budget for "time and material" project billing types. The effective multiplier is used to calculate the project billing rates by multiplying the effective multiplier by the direct labor cost to produce the project. The effective multiplier assumes that all project related expenses other than labor are reimbursable dollar for dollar. A mark-up multiplier may be applied to reimbursable outside consultants and other project related expense such as travel and reproductions.
The labor budget spreadsheet template computes the DPE rate and billing rate for each employee based on the profit plan effective multiplier and multiple of direct personnel expense.
Project Budget: Bottom-up (Scope First - Fee Last)
Project Budget: Top-down (Fee First - Scope Last)
Click here to see
sample spreadsheet template for top-down labor budget to calculate available
labor hours to produce project at project labor rates and multipliers.
Project Budget Progress Report
Compares project budget to actual.
