Construction & ContractorsBudget Allocator
Construction Budget Calculator
Allocate your master construction budget across land deductions, contingency reserves, contractor fees, and trade categories.
Calculation Results
Master Budget Allocation Formula
Direct Trade Budget = Total Budget - Land Cost - Contingency Reserve - General Contractor Fee- Contingency Reserve: 10%–15% held in escrow to handle change orders and field surprises.
- Contractor Fee: 12%–18% builder management fee.
- Direct Trade Pool: Divided across Structural (42%), MEP Systems (22%), Interior Finishes (30%), and Exterior (6%).
Step-by-Step Worked Example
Scenario: Allocating a $600,000 construction budget with no land purchase needed
Calculation Steps:
- Contingency Reserve (12%) = $600,000 × 0.12 = $72,000
- Contractor Fee (14%) = $600,000 × 0.14 = $84,000
- Direct Trade Budget = $600,000 - $72,000 - $84,000 = $444,000
- Framing & Structure (28% of Trade) = $444,000 × 0.28 = $124,320
- MEP Systems (22% of Trade) = $444,000 × 0.22 = $97,680
- Drywall & Interior (18% of Trade) = $444,000 × 0.18 = $79,920
Result: The project provides $444,000 for direct trade subcontracts, $84,000 for builder management, and a secure $72,000 contingency reserve.
How to Use This Calculator
- 1Enter your total approved financing or cash budget.
- 2Specify any land cost deductions if land is financed under the same loan.
- 3Review the itemized trade category allocations.
Assumptions & Limitations
- Estimates are based on standard national averages and current prevailing construction materials and contractor rates.
- Actual trade bids may fluctuate according to local building code requirements, permit fees, and site topography.
- Always obtain multiple written bids from licensed, bonded, and insured contractors before commencing work.
Frequently Asked Questions
Should the contractor fee come out of the gross budget or the trade cost?
In cost-plus agreements, the contractor fee is applied on top of direct costs. In fixed-price contracts, the builder fee is already integrated into the total contract price.
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