Design development requires resources — architects, engineers, software, and coordination meetings — all of which have associated costs.
Hence, budgeting for design is as crucial as budgeting for construction.
1. Design Budget Components
2. Budgeting Process
- Identify all design deliverables and required resources.
- Estimate hours and rates for each discipline.
- Include review and re-submission cycles.
- Add contingency (typically 5–10%) for scope changes.
- Track actual design hours vs. planned (Earned Value Technique).
3. Key Performance Indicators (KPIs)
- Design cost % vs. total project cost (usually 5–8%).
- Number of re-submissions per package.
- Design productivity (drawings per engineer per month).
- Design change impact on total project cost.
“Control your design hours, or they will control your budget.”