Project Budget
Budget can be defined as a plan for future against which the progress actually achieved is measured. Planing for a construction project is done in the form of construction programme.It shows the sequence in which the activities will be taken up. Before starting an activity it is necessary to initiate action to organise the resources required by the activity. Thus if the date on which the concrete is to be poured is decided and if takes up a week to place orders for resources like cement, aggregates and get them on site in time to start pouring concrete on the scheduled date the procurement of the resources has to he initiated one week before the date of pouring. Expenditure on concreting activity will have to be incurred ahead of the actual concrete. It will be obvious from this the construction programme prepared in terms of start and completion of activities will have to he translated into
- work related to activities in progress and the cost thereof, and
- work related to activities to he taken up in future and costs thereof.
This can be illustrated with a case:
- Construction supervisor has to continue masonry work next day by employing labour. He will have to pay labour wages.
- He has planned to start concreting work for which he has to convey material to the site work. He has to spend on conveyance chargeable to the item of concrete.
- He has to place order for certain materials for the work to be started next week. He has to pay advance with the orders. This expenditure is chargeable materials for the concerned item.
It is thus possible to prepare detailed programme of expenditure to he incurred on any day together with tlie items (and sub-items) to which these are chargeable. This constitutes the project budget for the field staff.
No comments:
Post a Comment