Budget Forecast and Cost Elemental Plan for Oakworth Offices Essay

Budget Forecast and Cost Elemental Plan for Oakworth Offices - Essay Example In the construction of a good budget forecast that can depend upon for cost analysis, all revenue and expenses must be correctly matched with, the budget estimate must make sense and proper methods such as variance analysis must be able to draft from for example in comparison with actual and expected expenditure. In defining a good construction plan, project costs must be clearly defined, to achieve far and more reaching goals in the industry (Building LLC 2014). The driving force towards establishing a good construction budgeted forecast is to is to be aware of the amount of cash the investor or shareholder is ready to spend on the project so as to avoid running of budget deficits in the long term. They will assist both the management and the project council to deduce if extra cash needs to be handed in, the project will continue for the foreseeable future purposes. The body in charge of quantity surveying must analyze critically the cost and expense required and make sure there is no wastage of resources when there are inaccurate estimations that will have future imbalances when compared to the source of money pocket. (Xiao, Xui, Xiao 2009).Project Budgeting will, therefore, include costs such as soft costs, construction costs, other owner contracted, facilities and furniture expenses. In the preparation of budget forecast for the Oaks worth, two stories building an evaluation of time provides a 10-month construction period, which would be allocated in tabular form as provided below. The time required for each project activity will be allocated based on the cost allocation methods such as the direct method and step down method that majorly bases on the amount of cash to be spent in the project process. (Schwulst 2014).