SCE5281
Construction Management
Topic 2 Time and Cost Management - Programming, Scheduling and Budgeting (Part 5 -
Budget and Cost C
,1
,Topic 1
Site Organization and Planning
(Part 7 – Budgetary and Cost
Control)
2
, Budgets and Budgetary Control
Budgets are used for planning the income and expenditure of a company or an organization.
With the growing complexity of the construction industry, it is essential that firms also plan
their policy well into the future. Through budgets such plans can be converted into the
quantitative and monetary terms.
Policy Budgets
A firm can arrive at a tendering price for its projects by budget analysis and knowing what
resources are available to carry out the work. From the budgets the firm will know, for
example, how much capital is necessary, and can then decide whether to expand or contract
any particular aspect of the business. From past results it may also be possible to determine a
change in demand that could give an indication of possible new expansion plans.
3
Construction Management
Topic 2 Time and Cost Management - Programming, Scheduling and Budgeting (Part 5 -
Budget and Cost C
,1
,Topic 1
Site Organization and Planning
(Part 7 – Budgetary and Cost
Control)
2
, Budgets and Budgetary Control
Budgets are used for planning the income and expenditure of a company or an organization.
With the growing complexity of the construction industry, it is essential that firms also plan
their policy well into the future. Through budgets such plans can be converted into the
quantitative and monetary terms.
Policy Budgets
A firm can arrive at a tendering price for its projects by budget analysis and knowing what
resources are available to carry out the work. From the budgets the firm will know, for
example, how much capital is necessary, and can then decide whether to expand or contract
any particular aspect of the business. From past results it may also be possible to determine a
change in demand that could give an indication of possible new expansion plans.
3
