# Construction Budgeting Basics ## Budget Components ### 1. Direct Costs - Materials - Labor - Equipment rental - Permits and fees ### 2. Indirect Costs - Insurance - Temporary facilities - Project management - Overhead ### 3. Contingency - Recommended: 10-20% of total budget - Higher for complex projects - Account for market fluctuations ## Creating Your Budget 1. Research current material prices 2. Get multiple contractor quotes 3. Include permit fees 4. Factor in seasonal cost variations 5. Consider long-term maintenance costs ## Cost Control Strategies - Track expenses in real-time - Review and adjust regularly - Document change orders - Maintain detailed records