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Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
Reality Check Budget
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Reality Check Budget

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An overview of the reality check budget process for orientation to subcontractors

An overview of the reality check budget process for orientation to subcontractors

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  • 1. PROJECT PLANNING THE “REALITY CHECK” BUDGET When we are planning a project for a client we depend on you, our subcontractors and vendors to provide essential budget and technical information about what we are planning. This is an overview of the first phase of that process. We call it the “reality check” budget. Here is how it works… Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 2. PROJECT PLANNING THE “REALITY CHECK” BUDGET Our job together is to provide our client with the answer to two essential questions: What it takes to accomplish those goals Everything they would like to achieve to make their good home better $ What’s possible? At what cost? Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 3. PROJECT PLANNING THE “REALITY CHECK” BUDGET CLIENT NAME & ADDRESS We do this by outlining their goals.Our DesignAgreementlists theproject’sgoals Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 4. PROJECT PLANNING THE “REALITY CHECK” BUDGET And producing a preliminary plan that they agree achieves those goals The “schematic” plan shows what we might choose to do Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 5. PROJECT PLANNING THE “REALITY CHECK” BUDGETWe now have a picture of “what’s possible”.Next we want to determine “at what cost?”We want to do this at the right level of detail,enough but not too much. Our goal is a low tohigh budget range to serve as a “reality check.”Our client can then determine whether theproject and its features are reasonable, andreact accordingly. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 6. PROJECT PLANNING THE “REALITY CHECK” BUDGET As we develop the project we will move from the Reality general to the specific as Review and Check we progress thru each Revise phase of the design Contract Budget process. When we request your input, be sure you Fixed Price Contract for a Clear Scope of Work understand where we are in the process. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 7. PROJECT PLANNING THE “REALITY CHECK” BUDGET We start by breaking the project intoCLIENT NAME “Phases” so that we understand their cost and, if needed, can choose to postpone or eliminate some work . This is a screen from our This helps you picture customized “Scope of Work” estimating system the areas of the project. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 8. PROJECT PLANNING THE “REALITY CHECK” BUDGET PHASE Next we describe TASK ITEM CATEGORY the tasks necessary, in general categories of work, to build what is designed in each phase. This is where your scope of work is described. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 9. PROJECT PLANNING THE “REALITY CHECK” BUDGETFor each task we determine what resources will berequired. At this stage we may choose general unitcosts to get close without taking your time. UNIT COST ITEM WHICH SUB? This is where we assign work to you Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 10. PROJECT PLANNING THE “REALITY CHECK” BUDGETOr we may identify the materials required and asubcontractor that will perform the work. We need an estimated cost from this subcontractor Now we need you! Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 11. PROJECT PLANNING THE “REALITY CHECK” BUDGET We use these phases and scope items to request a preliminary “Budget Proposal” from you for each item that we have assigned to you. We create this form to TASK ITEMS make responding clear and easy. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 12. PROJECT PLANNING THE “REALITY CHECK” BUDGETClear instructions about the purpose The project, who will do the work, the activeand use of the form are provided. plans, and the date A review of what to do A reminder about the need to respond in a reasonable time Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 13. PROJECT PLANNING THE “REALITY CHECK” BUDGETThen each item is listed with space foryou to provide cost, time, and comments What is the estimated cost for each item and how long might it take Is this just an estimated cost or can it be used to go to Contract Comments about this item that we need to pay attention to Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 14. PROJECT PLANNING THE “REALITY CHECK” BUDGETIf needed, we provide special notes about the task tocall attention to specific requirements or conditions. We add special technical notes, site conditions, or comments that you have provided about this task Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 15. PROJECT PLANNING THE “REALITY CHECK” BUDGETThose notes then appear in the proposal request, aswell as in the final work authorization Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 16. PROJECT PLANNING THE “REALITY CHECK” BUDGET HIGH LOWWe enter cost informationprovided by every sub, thenpresent our client with asummary of budget ranges foreach category and phase. Thishelps them understand thebudget and make a decisionabout how to proceed. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 17. PROJECT PLANNING THE “REALITY CHECK” BUDGETAlong with the budget,the client receives thewritten scope of workthat includes everyitem in each phase andcategory in the exactsame language that youwere provided, butwithout the specialtechnical notes. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 18. PROJECT PLANNING THE “REALITY CHECK” BUDGET With your help, we now have all the information necessary for our client to understand… What it takes to accomplish those goals Everything they would like to achieve to make their good home better $ What’s possible? At what cost? Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 19. PROJECT PLANNING THE “REALITY CHECK” BUDGET We can now revise the project in response to what we have learned. Reality Review Check and Revise In the next phase of the process we will clarify the Contract Budget details necessary to produce a clear scope of work for the final fixed price contract. You will have the chance to confirm Fixed Price Contract for a or revise the information you Clear Scope of Work have provided in this phase. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 20. PROJECT PLANNING THE “REALITY CHECK” BUDGETWe manage project information in this way so that we can easilyrespond to the client’s changes in the scope of the project From “reality check” to final contract budget Perhaps the client chooses to do less work ELIMINATE For the final contract we go from low to high ELIMINATE budget ranges to single fixed costs Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 21. PROJECT PLANNING THE “REALITY CHECK” BUDGET By managing information in this way we are striving to make the best use of everybody’s time. We value your attention and rely on your input to assure that the project is successful and satisfying for everyone. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 22. PROJECT PLANNING THE “REALITY CHECK” BUDGET What happens next? Once our client responds to the project budget we can refine the details and produce accurate drawings and a contract scope of work. Then we will ask you to provide costs for the actual project as shown and described in those documents. Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants
  • 23. PROJECT PLANNING THE “REALITY CHECK” BUDGET MAKE SENSE Designers & Builders of FUTURE FRIENDLY HOMES • Certified Passive House Consultants

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