04 / Cost
A project budget includes more than the contractor’s base bid. Start with the construction cost guide, then use the worksheets to organize expenses and compare proposals on a common scope.
Start with the guide and worksheets
House Construction Costs
Understand cost per square foot, its limits, and the assumptions behind a project budget.
Construction Budget Worksheet
Track cost details and linked totals in Excel. Includes an illustrative Ohio house budget.
Bid Comparison Worksheet
Compare four bids, scope differences, allowances, alternates, schedules, and qualifications using a filled example.
What belongs in the budget
Hard costs cover physical construction. Soft costs include professional services, permits, testing, and other project expenses outside the construction work. Identify owner purchases, site work, utilities, and exclusions so they do not disappear between separate proposals.
Allowances and contingencies
An allowance is an amount carried for an item that is not fully selected or defined. Check what it includes and how it compares with your intended selections. A contingency is a reserve for uncertainty. Keep both visible and avoid counting an allowance again if it is already included in a bid.
Contractor pricing
Contractor pricing includes direct construction costs and the costs of managing and supporting the work. General conditions may cover supervision, temporary facilities, cleanup, and project administration. Check how overhead, profit, insurance, and other charges are treated in each proposal.
Compare scope before comparing totals
Record exclusions, assumptions, selected alternates, and allowance differences before using adjusted bid totals. The comparison worksheets contain examples; replace their figures with your own project information.
Read the Construction Bidding guide for a step-by-step review of bid packages, exclusions, allowances, alternates, and contractor qualifications. The worked example shows how clarified scope changes the comparison between two proposals.
Keep the budget current
Record approved changes and update the forecast when scope or commitments change. Review cost-saving alternatives against the project’s performance and design requirements, and document decisions with the project team.
Use the Project Planning Checklist alongside your budget, drawings, and contractor proposals.
Keep the next decisions organized with a working checklist or worksheet.
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