Design development requires resources — architects, engineers, software, and coordination meetings — all of which have associated costs.

Hence, budgeting for design is as crucial as budgeting for construction.

1. Design Budget Components

2. Budgeting Process

1. Identify all design deliverables and required resources.
2. Estimate hours and rates for each discipline.
3. Include review and re-submission cycles.
4. Add contingency (typically 5–10%) for scope changes.
5. Track actual design hours vs. planned (Earned Value Technique).

3. Key Performance Indicators (KPIs)

• Design cost % vs. total project cost (usually 5–8%).
• Number of re-submissions per package.
• Design productivity (drawings per engineer per month).
• Design change impact on total project cost.