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Module 2: Project Budget & Funding (Owner)

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

Written by Carmela Flores
Updated over 2 weeks ago

Overview

INGENIOUS.BUILD's Project Budget system is designed to streamline and enhance the financial management of your projects. It offers flexibility, accuracy, and real-time tracking of your project's financial health and resource allocation throughout the project lifecycle.

Click here to learn more about budget creation.

Process

Project Budget

A. Project Budget Creation

Let's create a budget to start tracking your project's financials.

  1. Using the left-hand navigation menu, access the Project Budget module.

  2. Select Create Single Master Budget. At this stage, you also have the option to create a Feasibility Study.
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    NOTE: 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. The process for setting up your Project Budget is easier than ever. Instead of navigating through multiple menus to load cost codes, you can trigger your project structure with a single click.
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    • Instant Loading: Use the "Apply Template" button directly on the empty state screen to pull in your company’s pre-set cost codes and categories immediately.

    • Manual Control: You still have the flexibility to bypass templates and build from scratch using the "+ Add Category & Cost Code" button.

  4. In this exercise, click Apply Template and select the Project Cost Codes template. This will import the pre-defined cost code structure tailored for tenant improvement projects. Click Apply.

  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 tab 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 Project Budget

  1. Click Expand All to view all cost codes displayed on this Project Budget.

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

  3. Find the Cost Code '03.10 Project Management Consultant' under Consulting and Miscellaneous, 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.
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    3. Select Construction by searching for it in the search bar or finding it in the list. Click Load.

    4. Delete the Demolition - Existing Building Improvements, Demolition - Existing Buildings or Structures, and Construction - Sitework line items 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 from 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 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 Approve at the top right of the Master Budget / ACR.

  2. Fill out the approval details:

    Note the Configuration Warning: You may see a message stating, "You have not configured an approval process for this module." Since this is a training exercise, you can ignore the prompt to go to Project Settings and proceed with the manual approval below.

    1. Enter Approval Name: Type “Your Name_Training” in the name field.

    2. Select Approval Type: Choose Final Approval.

    3. Type 'YES' to confirm in the box provided.

    4. Add Note: Enter a brief comment if desired.

    5. Finalize: 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 left-hand project navigation menu, select the Funding module.

    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 will be automatically applied.

    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.

      3. Click Save and Add New Fund.

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

    1. Click the + Add Fund button.

    2. Select Project Specific Fund and 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.
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  4. Adjust Internal 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.
        ​Note - 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 Project Budget Summary and Details

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

  1. Navigate back to the Project Budget module using left-hand navigation menu.

  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 No Designated Area (cost per area type won't display) as the Area Type and click Next.

    5. Select Budget Summary & Detail and click Export.

    6. Review the PDF you have exported. Note that the summary is on the first page, and the detailed breakdown on the second page with a project funding summary.

By integrating funding sources, cost allocations, and approval workflows into one central platform, you can ensure seamless collaboration between teams and stakeholders, ultimately leading to more successful, on-budget project outcomes.

Proceed to Module 3

Module 3

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