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Module 2: Project Budget & Funding
Module 2: Project Budget & Funding

This covers the process of creating, managing, and approving the project budget, as well as allocating funding sources for the project.

Cara Alva avatar
Written by Cara Alva
Updated yesterday

Overview

The Master Project Budget / ACR process streamlines the creation, management, and approval of project budgets, ensuring efficient tracking and allocation of financial resources throughout the project lifecycle.

Process

Master Project Budget / ACR

A. Project Budget Creation

Let's create a budget to start tracking financials for your project. Click here to learn more about budget creation.

  1. Using the Project Navigation Menu or the Project Dashboard navigate to the Master Project Budget / ACR module. ACR stands for "Anticipated Cost Report".

    1. Make sure you are in the Owner Budget (not Your Budget) tab in the top right-hand corner.

  2. Select Create Single Master Budget. At this stage you also have the option to create a Feasibility Study.

    Feasibility Studies can be used to compare budget options before a budget has been created. Click here to find out more about feasibility studies.

  3. Click Load cost codes from template. Budgets can be created by building out categories and cost codes manually or by loading a company template.

  4. Select the Life Cycle Format - Standard Tenant Improvements template by searching for it in the search bar or finding it in the list.

    This will import the cost code structure for your project budget based on a standard tenant improvement type project. Click Load Selected.

  5. You will be prompted to confirm your project base currency as USD. Click Proceed.

NOTE: The full library of Templates and the master lists from which they are made can be found in the Lists and Templates module in the Left-Hand Navigator.

Project Managers have view-only access to the lists and templates.

Once using the system for real projects, if there is a template you would like to create or an item you feel should be added to the master list please contact your system administrator.

Only system administrators will be able to edit the Lists and Templates.

B. Build the Master Project Budget

  1. Click Expand All to view all cost codes displayed on this Master Budget/ ACR.

  2. Find the Cost Code: 02.20 Architect under Professional Design Services, and enter $206,250 in Column ‘A’ Original Budget.

  3. Find the Cost Code: 03.10 Project Management Consultant under Professional Consulting Services, and enter $110,000.

  4. Find the Cost Code: 09.10 Project Contingency under Contingency, and enter $476,625.

  5. Find the Cost Code: 04.50 Tenant Construction under Construction Cost.

    1. Click the calculator icon.

    2. Budget Line Items can be added manually or loaded from templates and can be used to break down budget values. Click Load from Template.

    3. Select the Construction (Base Bldg & Interiors) - Tenant Rep Interiors Conceptual template by searching for it in the search bar or finding it in the list. Click Load.

    4. Delete the Construction - Restroom Upgrades and/or Modifications line item using the trash can icon.

    5. Input the following values:

    6. Click Save.

  6. The total budget at this point should be $5,242,875.00. If your budget total is different than this make sure to double check the numbers that you input into the cost codes referenced above.

C. Approve the Budget

Approving the budget as "final" locks in the Original Budget Values in Column A of the Master Project Budget.

This allows a solid baseline to compare changing costs against. There is also the option for phased approvals. Click here to learn more about phased approvals.

  1. Click Submit for Internal Approval at the top right of the Master Budget / ACR.

  2. Fill out the approval details:

    1. Enter “Your Name_Training” as the Approval Name.

    2. Select Final Approval.

    3. Click Submit.

  3. Click Approve.

  4. Type "YES" then click Approve Budget.

The budget is now approved. Notice that Column A of the budget is no longer editable. Changes to the budget will now be processed as an official budget change tracked in Columns B or D.

Funding Sources

D. Allocate Funding to the Budget

Funding sources represent the money available on a project for payment of committed costs.

As funds are allocated to a project and invoiced, the funding sources will be automatically updated to reflect the total fund amount against the total amount billed, providing you with the most accurate and up-to-date information.

  1. Create a funding source to represent the money coming from the tenant to fund the project.

    1. Using the Project Navigation Menu select Funding.

    2. Click the button for Add Fund.

    3. Select Fund Type Project Specific Fund and click Next Step.

  2. Fill out the Tenant Funding Source Details:

    1. Fund Name: 'Tenant Funding'.

    2. Provider, + Select John Smith at ABC and click the Bookmark icon on the right of the name. Click Save.

    3. Allocate the entire budget to the Tenant (until we know what the allocation to the landlord will be).

      1. Click the calculator icon next to Allocation to Project.

      2. Add a line called “Conceptual Budget {Today’s Date}” with a Lump Sum of $5,242,875. Click Save.

      3. Click Add New Fund.

  3. Create a funding source to represent the money coming from the landlord to fund the project.

    1. Click the button for Add Fund.

    2. Funding Type: Project Specific Fund. Click Next Step.

    3. Funding Source Name: Landlord Funding.

    4. Provider, + Select William Starr at WRS Ownership Partner and click the Bookmark icon on the right of the name. Click Save.

    5. Allocate a portion of the budget to the Landlord.

      1. Click the calculator icon next to Allocation to Project.

      2. Add a line called “Landlord TI Allowance” with a contribution of $87.5/GSF provided by the Landlord.

    6. Click Save.

    7. Click Add New Fund to save the information entered.

  4. Adjust Tenant Funding Amount.

    Now that the portion of the budget that will be funded by the landlord is determined, we need to adjust the Tenant Funding amount so that the project is not overfunded.

    1. Click on the Tenant Funding source and select Edit.

    2. Reduce the Tenant Funding amount.

      1. Click the calculator icon next to Allocation to Project.

      2. Add a line called "Landlord TI Allowance" with a deduction of $-87.5/GSF.

        Make sure you include a negative amount when entering the Unit Price since the landlord funding is being deducted.

      3. Click Save.

    3. Click Save in Edit Fund (Total funding should now be $5,242,875.00).

E. Export Master Budget Summary and Details

The Master Project Budget / ACR has multiple export options and can be exported at any time. Export a PDF of the current budget.

  1. Navigate back to the Master Budget / ACR module using the navigation menu on the lefthand side of the screen.

  2. Download a PDF of the Budget.

    1. View export options by clicking the Export icon in the top right corner.

    2. Click Export to PDF.

    3. Select Project Budget PDF and click Next.

    4. Select Gross as the Area Type and click Next.

    5. Select Budget Summary & Detail and click Export.

    6. Look at the PDF you have exported. Notice the summary and the project funding summary are on the same page.

By centralizing project financials into one comprehensive, easy-to-use system, this process improves budget accuracy, ensures efficient fund allocation, and enhances transparency, ultimately contributing to more successful project outcomes.

Proceed to Module 3:

Module 3

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