Budgets are quite often a limiting constraint for a project. This constraint can start during the “Blue Sky” or “Green Field” design phases. Being able to properly estimate and budget the project largely impacts its success. Some of the challenges come from not understanding what technology already exists that can be leveraged versus developing new solutions at a higher cost. Quite often the costs of audio, video, and control systems are improperly calculated during estimating for a large construction project. Many professional estimating companies do not have the proper tools to estimate what it actually costs to install an AV system. For many special venues these estimates often overlook the cost of creating content for the project. this situation results in either an over inflated price, or an unrealistic low price. Budget reviews are important for all project partners.
Providing realistic budgetary numbers throughout all phases of the project helps project partners stay on target to achieve goals. Budgetary goals vary for each project, client, and business plan. For some projects the key metric of success is the capital expenditure (Capex), for others it is meeting the future Operating Expenses (Opex). A key item to monitor is the budget allocation, or what costs are carried by which project partners. For instance, the cost of conduit and wire could be carried by the general contractor, the electrical contractor, the low voltage contractor, the structured cable contractor, or the integration firm. Each of these approaches has different cost impacts and project impacts. The key item though is to verify that the cost is not being captured multiple times resulting in an inflated cost. Let the professionals at Advisist conduct budgetary reviews to define and understand all of the budgetary requirements and impacts.