Build the total-project view
List the construction scope, site work, design and engineering, permits and testing, owner equipment, temporary operations, and other owner costs. Mark amounts as quoted, estimated, allowed, or still unknown so decision-makers can see the basis.
Use allowances and reserves deliberately
An allowance covers an identified item whose final selection or amount remains open. A reserve is an owner’s provision for uncertainty. State what each amount is intended to cover and who can authorize its use; neither should hide an undefined scope.
Keep the current forecast visible
- Original approved budget.
- Approved additions or deductions.
- Current commitments and amounts paid.
- Forecast for remaining uncommitted work.
- Unresolved decisions and risks with their possible cost effect.
- Remaining owner reserve, with every use recorded.