Theater Planning

Chapter 8Project Budgets

Predicting and managing the cost of building—that is, establishing and maintaining a project budget—is fundamental to a successful outcome. Unfortunately, budget and cost terminology is often used loosely, and what constitutes “cost” can vary from project to project. Any attempt to compare the costs of buildings requires an understanding of what is and is not included in the cost figures. Therefore, it’s important to understand what makes up the cost of buildings, the variations possible, and the common terminology used.

Budget and Cost Components

Project costs are divided into two major categories—construction cost and owner’s costs. On traditional design-bid-build projects, the construction cost is equivalent to the ...