What does the construction budget include?

The construction budget primarily includes the part of project costs that are paid to contractors. This aspect is critical as it encompasses the tangible expenditures associated with the physical execution of the project, namely the fees and payments made to the contractors responsible for completing the construction work. This segment of the budget helps in ensuring that sufficient funds are allocated for actual construction activities, which are pivotal to progressing a project from design to completion.

Focusing on the broader context, while options like estimated profits for contractors may influence overall project costs, these profits are typically calculated and considered separately in the overall project financials rather than being part of the construction budget itself. Likewise, design and site preparation costs, while essential to the project, fall under pre-construction expenses that are categorized distinctly from the construction budget. The breakdown of overall project costs by phases, although vital for project management and scheduling, does not specifically reflect what the construction budget constitutes. Instead, the construction budget is more concerned directly with the payments to contractors who perform the actual construction work.