Question

I have not been apart of the budgeting process before, but I would believe that it would be difficult to budget an expansion project of building. Like, I observed nothing goes exact to the plan. There will always be unforeseen items that were not budgeted and will have to either take from another source or another portion of the expansion. Making deadlines and ensuring that all items are being paid on time so that specific jobs are completed so the next task can task can start to being completed. Trying to figure out the cheapest contractors to do the work that are capable of completing the job task on time without going over deadlines, or do you hire a contract company that you know can complete the task quickly, safely, effectively, and without hassle. Yet, a company like that will potentially cost more. These are the decisions that need to be made to stay within budget for a big project. Especially, if deadlines and budget cost are not matching up. ( i need a reply to this discussion )

Answer 1

Yes, generally the costs that are planned or budgeted, deviate from the original costs.

Cost budgeting is a device to gauge the costs or essential endeavors for ventures, work bundles or exercises in venture administration. Cost budgeting incorporates the estimation of costs, setting a settled spending plan, and overseeing and controlling the genuine costs (contrasted with the evaluated ones). The costs at that point must be distributed to the exercises or work bundles in a venture. A deliberately executed timetable and asset design empowers a more exact cost budgeting.

But to keep costs in control, check, budget is defined and always being reviewed to see the deviations if any, and the reasons for it and in future how it can be reviewed.

Budget is defined so that a plan can be made overall but due to the constantly changing environment, it is almost impossible to certainly define budget, but it is defined at an almost equivalent level.