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1. What does each column in the Budget represent? |
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Understanding the Budget
The project Budget is the foundation of the project cost control process which involves careful integration and synthesis of information from various sources in order to qualify and quantify deviations from such plans expressed in terms of "impacts" to Budget (also referred to as "cost"). The first three columns in the Budget simply display the Cost Code, Cost Category, and Description of each cost code that was initially entered in your Estimate. Once a Project is promoted to "In Progress" status, the values from the Estimate are locked in and displayed in the Estimate column of the Budget (though this will be updated with authorized Change Orders).
Descriptions for each column on the Budget
Estimate - The value for the cost code as it was input on the original Estimate, or increased/decreased based upon authorized changes.
Budget - Initially, the same as the value from the original Estimate; when the project is In Progress it may be adjusted by users who have the "Adjust Budget" option. Users can also take advantage of our "Baseline Budget" feature, which allows you to differentiate if you are updating the Baseline (if the estimate was intended to change upon promotion to in progress) vs a one off Budget adjustment.
Actuals - The actual dollars that have been paid out for this cost code through an approved Invoice, or a timesheet or expense request from an employee. Adjusting Entries from Transactions will also be housed here.
Open - The value of the Open Commitments (Subcontract, PO, or Employee Commitment), minus any Actuals.
At Risk - The amount still left to buy to complete the scope of work for this cost code in full; the projected dollars you anticipate spending to complete the project.
Contingency - Any dollars you want to leave in Contingency for this cost code; if unspent, the amount in the Contingency column will eventually become profit. This is Contractor's Contingency - Owner's would be treated as an independent Cost Code.
Complete - Each cost code's total Cost to Complete; the sum of the Actuals, Open, At Risk, and Contingency columns
(Over) Under - The positive or negative difference between the Budget column and the Complete column
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Path:
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Menu | Projects | <Project Name> | Budget tab
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Steps:
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To see Budget related reports, click "View" See Figure 1.
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Select Budget Adjustments, Actual Costs, Budget, Financial Overview, Negotiated Costs, Open Commitments, or Time Tracking Log.
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Open to view, email, and/or print
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Figure 1,
Choose an option from the dropdown
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Figure 1,
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Figure 1,
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2. Adjust Project Budget |
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Budget control is arguably the most important factor in any project. Any impacts or changes to the Budget must be factored into the overall projection of the job. Keeping and monitoring the Budget saves you money and a lot of hassle in the long run. The Budget tab in the Projects section of RedTeam gives you tools to help you easily maintain and monitor your project Budget.
Once your Project is "In Progress" you may find that you need to make adjustments to the Budget to move money around to other cost codes or categories, or even to add additional cost codes that were not included in the original Estimate.
The adjustment itself can take place as either a standard adjustment, or an adjustment to your project’s Baseline. The Baseline method is accessed from the grey plus button, while the standard adjustment is accessed by clicking on the cost code’s budget amount you wish to adjust.
When adjusting the Baseline, you will be taken to a different view of the budget, and can simply click into the desired budget’s line and update accordingly. You can only change the Baseline amount, not the adjustment section of the screen.
When making a standard adjustment, you can first confirm the cost code, scope, and cost category of this change. You will also be given the choice between increasing/decreasing the line by the entered amount, or changing the budget to the entered amount. A note will be required for any change, as well as the optional ability to tie this to an open issue
You will need permissions to be able to adjust the Budget. If you do not have the option to adjust, please contact your System Administrator or RedTeam Service through the Help Center for assistance.
Admins: to add the permission for a user, go to the Configuration menu > Roles & Permissions > click the tools icon for the Role > Open > search for: UpdateBudget
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Path:
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Project Home menu | Budget
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Steps:
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From the Project's Home menu, click "Budget" See Figure 1.
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Click the New (+) icon and select "Adjust Budget"
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Click on any cell in the Budget column
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Adjust the number in the Budget cell
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Hit "Enter" on your keyboard to save changes
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Click "Close"
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FOR STANDARD ADJUSTMENTS
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Select the Budget line you would like to adjust, and click into it. See Figure 2.
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You can choose to either "Increase or Decrease" budget to, or "Adjust Budget to This Amount". See Figure 3.
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Be sure to save your work. See Figure 4.
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OR
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FOR BASELINE ADJUSTMENT
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Navigate to the "+" button in the Budget, and select "Mass Update Baseline Budget". See Figure 5.
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You can then adjust the Baseline as needed by clicking into the respective column. See Figure 6.
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Be sure to hit the "Enter" key to save your work.
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Figure 1,
Click to open the Budget
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Figure 1,
Click to display the Adjust Budget option
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Figure 1,
Only cells in the Budget column may be adjusted
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Figure 1,
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Figure 1,
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Figure 1,
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Figure 1,
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Figure 2,
Standard Budget Adjustment
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Figure 3,
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Figure 4,
Be sure to save your work.
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Figure 4,
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Figure 4,
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Figure 5,
How to begin editing the baseline
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Figure 6,
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Figure 6,
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3. Add Cost Codes to Budget |
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Often, the Budget is automatically generated based on your Estimate and the Assembly Items in it. For more information on creating a Estimate and adding Items, see " Manage Project Estimate" Wiki.
If you did not enter an original Estimate (for instance, if you chose the option to Skip the Preconstruction and Proposal Processes), you have the option to add Cost Codes to the Budget once the Project is "In Progress."
You might also follow this process to add Cost Codes to the Budget that were not included in the original Estimate.
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Path:
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Project Home Menu | Budget
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Steps:
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Click on the New (+) icon and select Add Cost Code from the dropdown See Figure 1.
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Click the New (+) icon again and select "Add Cost Code"
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Select "Add Assemblies"
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Select one or more Cost Codes from the list See Figure 2.
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Click "Save"
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Figure 1,
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Figure 1,
Click "(+)Add Icon" and select Add Cost Code
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Figure 1,
Select from the dropdown
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Figure 2,
Scroll or search the list and select multiple Assemblies
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Figure 2,
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4. Adjust Budget Contingency |
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Budget control is arguably the most important factor in any project. Any impacts or changes to the Budget must be factored into the overall projection of the job. Keeping and monitoring the Budget saves you money and a lot of hassle in the long run. The Budget tab in the Projects menu of RedTeam gives you tools to help you easily maintain and monitor your project Budget. Cost contingency is a crucial aspect of cost estimation that measures risk in a project. In the Budget, it is a method of expecting and planning for these uncertain costs. With appropriate permissions and once the Project has been placed in InProgress status, you may alter, or adjust, the Project Budget Contingency line item right from the Budget tab.
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Path:
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Project | Home menu | Budget Tab
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Steps:
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From the (In Progress) Project home menu, click "Budget" See Figure 1.
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Click the New (+) icon
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Click "Adjust Contingency"
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Click the contingency item that you wish to edit from the contingency column of the Budget See Figure 2.
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Select the appropriate project scope and manually edit the contingency amounts as necessary for each cost category See Figure 3.
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Click "Save" when done editing
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When finished, click "Close"
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Figure 1,
If the Project is not In Progress, click the Budget tab as an alternative
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Figure 1,
The option to Adjust Contingency is based on user permissions
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Figure 1,
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Figure 2,
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Figure 3,
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Figure 3,
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Figure 3,
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