This article provides information on the internal tools that your development organization can use to monitor the project budget at the various stages of cost realization. These tools give you stronger insight into your project finances to ensure that a project remains on time and on budget.
The tools outlined in this article are primarily used prior to a formal change order or reallocation executed in the draw package. Check out these articles for information change order management and budget adjustments in the draw submission.
Whenever a vendor agreement is recorded in your project, the agreement amount is considered a 'committed' cost on the applicable line item.
The 'committed' costs can also be viewed on the project 'Overview' tab. This budget table view compares the budget amount for a line item to the most probable costs (committed costs) based on agreements.
Track Exposures in your Budget
During the life your project, events will happen that eventually result in change orders or executed budget reallocations. These events typically occur outside the original construction contract or vendor agreement. Examples of these events include:
Increased architecture fees due to a redesign
Unexpected soil conditions while excavating
Additional financing costs
The list is seemingly endless. While these changes will eventually be included on the budget summary in a draw package, the event may be well known and worthy of tracking much earlier. Rabbet calls these events 'exposures'.
Click 'Add Exposure' on the project 'Agreements' tab.
In the exposure modal, complete the applicable fields and click 'Create'
This exposure amount now appears at the top of the agreements table. Inputting this information has also created new 'anticipated' calculations at the top of the agreements tab.
Tracking the exposures in Rabbet gives you the most current insight into your project budget. These potential and/or eventual costs can be monitored as exposures to your budget until they are formalized as change orders or reallocations in a draw period.
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