Question: My company is planning to expand its manufacturing capacity. Any words of advice on how best to scope the budget for construction projects?

Answer: As the song goes: “Money, money, money, money!” When budgeting for any building project—whether renovation, additions or new, green construction—it’s important to develop your project budget based on total project costs, not simply construction costs.

The language of management is money and, from a management perspective, all money flows to the bottom line. As a facilities manager, it’s critical that you scope any construction project from the same vantage point as your company’s senior management. Sound decisions can only be made based on complete information. Surprises are to be avoided.

The cost of construction is generally understood to include actual dollars paid to the general contractor, construction manager, or other delivery team to build or renovate a building. Total project costs include any fees, regulatory, legal, and fit-up costs or other additional expenses typically associated with a building project from concept to occupancy. Here’s a handy checklist that may apply to any project, depending on its complexity.