Reality Check Budget

PROJECT PLANNING THE “REALITY CHECK” BUDGET

When we are planning a project for a client we
depend on you, our subcontractors and vendors
to provide essential budget and technical
information about what we are planning.

This is an overview of the first phase of that
process. We call it the “reality check” budget.

Here is how it works…
Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants


Our job together is to provide our client with the
answer to two essential questions:

What it takes to
accomplish those
goals

Everything they would
like to achieve to make
their good home better $
What’s possible? At what cost?


CLIENT NAME &
ADDRESS
We do this by
outlining their goals.

Our Design
Agreement
lists the
project’s
goals


And producing a preliminary plan that
they agree achieves those goals

The
“schematic”
plan shows
what we
might
choose to do



We now have a picture of “what’s possible”.
Next we want to determine “at what cost?”

We want to do this at the right level of detail,
enough but not too much. Our goal is a low to
high budget range to serve as a “reality check.”

Our client can then determine whether the
project and its features are reasonable, and
react accordingly.


As we develop the project
we will move from the
Reality general to the specific as
Review
and
Check
we progress thru each
Revise
phase of the design
Contract
Budget
process.

When we request your
input, be sure you
Fixed Price Contract for a
Clear Scope of Work understand where we are
in the process.


We start by breaking
the project into
CLIENT NAME

“Phases” so that we
understand their cost
and, if needed, can
choose to postpone or
eliminate some work .

This is a screen from our
This helps you picture
customized “Scope of
Work” estimating system
the areas of the project.



PHASE
Next we describe

TASK ITEM
CATEGORY the tasks
necessary, in
general categories
of work, to build
what is designed in
each phase.

This is where your
scope of work is
described.

For each task we determine what resources will be
required. At this stage we may choose general unit
costs to get close without taking your time.

UNIT COST ITEM

WHICH SUB?
This is where
we assign
work to you



Or we may identify the materials required and a
subcontractor that will perform the work.

We need an estimated cost
from this subcontractor Now we need you!


We use these phases and
scope items to request a
preliminary “Budget
Proposal” from you for
each item that we have
assigned to you.

We create this form to
TASK ITEMS

make responding clear
and easy.

Clear instructions about the purpose The project, who will
do the work, the active
and use of the form are provided. plans, and the date

A review of what to do

A reminder about the need to
respond in a reasonable time


Then each item is listed with space for
you to provide cost, time, and comments What is the
estimated cost for
each item and how
long might it take

Is this just an
estimated cost or
can it be used to go
to Contract

Comments about
this item that we
need to pay
attention to



If needed, we provide special notes about the task to
call attention to specific requirements or conditions.

We add special technical notes,
site conditions, or comments that
you have provided about this task



Those notes then appear in the proposal request, as
well as in the final work authorization



HIGH
LOW
We enter cost information
provided by every sub, then
present our client with a
summary of budget ranges for
each category and phase. This
helps them understand the
budget and make a decision
about how to proceed.


Along with the budget,
the client receives the
written scope of work
that includes every
item in each phase and
category in the exact
same language that you
were provided, but
without the special
technical notes.



With your help, we now have all the information
necessary for our client to understand…

What it takes to
accomplish those
goals

Everything they would
like to achieve to make
their good home better $
What’s possible? At what cost?

We can now revise the project
in response to what we have
learned.
Reality
Review Check
and
Revise In the next phase of the
process we will clarify the
Contract
Budget details necessary to produce a
clear scope of work for the
final fixed price contract. You
will have the chance to confirm
Fixed Price Contract for a or revise the information you
Clear Scope of Work
have provided in this phase.


We manage project information in this way so that we can easily
respond to the client’s changes in the scope of the project
From “reality check” to final contract budget

Perhaps the
client
chooses to
do less work

ELIMINATE

For the final contract
we go from low to high
ELIMINATE budget ranges to single
fixed costs



By managing information
in this way we are striving
to make the best use of
everybody’s time.

We value your attention
and rely on your input to
assure that the project is
successful and satisfying
for everyone.



What happens next?

Once our client responds to the project
budget we can refine the details and
produce accurate drawings and a
contract scope of work.

Then we will ask you to provide costs for
the actual project as shown and
described in those documents.



MAKE
SENSE


Reality Check Budget

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