Bottom up budgeting

 

If you have come directly to this topic, you may first wish to review the topic Fee Allocation.

 

Bottom up budgeting is suitable in the following scenarios.

 

Scenario

Use Budget Type

I already have a resource budget fee but need to calculate my non-recoverable fee element based on anticipated costs in order to set the overall project fee.

Resource calculations - Top down

Non-Rec. calculations - Bottom up

I need to calculate my project fees based on budgeted costs and target profit margin.

Resource calculations - Bottom up

Non-Rec. calculations - Bottom up

 

 

  1. Using bottom up budgeting, the Core Project Fee, elements Allocated to Non-Recoverable and Allocated to Resource are all read only, being automatically calculated based on the resource and non-recoverable budgeting at task level.

  2. The Variations budget will remain at 0.00 unless tasks in the Budget excluding non-recoverable section are ticked as a variation, whereby the Resource Fee £ and Non-Rec. Fee £ will contribute to these values.

  3. Use the Fee Notes popup to record any notes related to the total project fee.

Budget excluding non-recoverable

  1. Enter the Resource Cost £ you wish to budget to this task.

  2. Enter the Resource Margin % you wish to budget to this task.
    This is the percentage of the resource task fee you anticipate spending to deliver this work.
    The Resource Profit £ will automatically calculate.
    Alternatively, enter the Resource Profit £ and the Resource Margin % will automatically calculate.

  3. The Resource Fee %, Resource Fee £ and Resource Cost % will automatically calculate.

Note: To help with resource fee and cost budgeting you can use the Resource budget calculator.
             Click the icon to access this feature.

 

  1. Use the Fee Notes popup to record any notes related to this task budgeting.

  2. Repeat steps 1-4 in order to complete budgeting for all tasks.

  3. Total Core Project Fee task values will be automatically calculated below your task budgeting.

  4. If adding Variations to the project budget, identify these by ticking the Variations check box to the right of the task name.
    This will remove the Resource Fee % column allowing you to budget these tasks separately from the core resource fee.

  5. Total Variation task values will be automatically calculated below your task budgeting.

Budget including non-recoverable

  1. You can budget for non-recoverable elements of your fee.
    This would typically cover an element of the fee that you wish to apportion to expenses.

  2. Enter the Non-Rec. Cost £ you wish to budget to this task.

  1. Enter the Non-Rec. Cost % you wish to budget to this task.

    Note: This is the percentage of the non-recoverable task fee you anticipate spending to deliver this work.

  2. The Non-Rec. Fee % and Non-Rec. Fee £ will automatically calculate.

  1. Repeat steps 2-4 in order to complete budgeting for all tasks.

  2. Total Core Project Fee task values will be automatically calculated below your task budgeting.

  3. If adding Variations to the project budget, identify these by ticking the Variations check box to the right of the task name.
    This will remove the Non-Rec. Fee % column allowing you to budget these tasks separately from the core resource fee.

  4. Total Variation task values will be automatically calculated below your task budgeting.

 

Once budgeting for resource and non-recoverable elements of the fee has been completed, you can review your Total Budget Profit.

 

 

 

 

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