Real Estate Glossary

What is Construction Budget?

A construction budget is a financial plan for a building project that outlines the estimated costs for materials, labor, and other expenses. It is important to create a construction budget to ensure that the project stays on track and within the allocated funds. A construction budget typically includes both direct costs, such as materials and labor, and indirect costs, such as permitting and inspection fees. It may also include a contingency fund to cover unexpected expenses that may arise during the construction process. The construction budget should be based on a detailed estimate of the costs for each aspect of the project, and should be reviewed and updated regularly to ensure that it remains accurate and realistic. Proper planning and management of the construction budget can help ensure that the project is completed on time and within budget, while minimizing the risk of cost overruns or other financial problems.