What is the best way to plan and budget for facility management projects?

1 Scope and objectives

The first step in planning and budgeting for facility management projects is to clearly define the scope and objectives of the project. What is the problem or opportunity that the project is addressing? What are the expected outcomes and benefits of the project? How does the project align with the corporate real estate strategy and the business objectives? By answering these questions, you can establish the purpose, scope, and deliverables of the project, as well as the key stakeholders, roles, and responsibilities involved.

2 Cost estimation

The next step is to estimate the cost of the project, based on the scope and objectives. This involves identifying and quantifying the resources, materials, labor, and equipment needed for the project, as well as the contingencies, risks, and uncertainties that may affect the cost. You can use various methods and tools to estimate the cost, such as historical data, benchmarking, parametric modeling, or bottom-up analysis. The cost estimation should be realistic, accurate, and transparent, and should include a breakdown of the cost components and assumptions.

3 Budget allocation

Once you have estimated the cost of the project, you need to allocate the budget for the project, based on the available funds and the priorities of the organization. The budget allocation should consider the return on investment, the urgency, and the impact of the project, as well as the interdependencies and trade-offs among different projects. You should also ensure that the budget allocation is consistent with the corporate real estate strategy and the financial policies and procedures of the organization.

4 Schedule and resources

After allocating the budget for the project, you need to plan the schedule and resources for the project, based on the cost estimation and the objectives. The schedule and resources should define the timeline, milestones, tasks, and dependencies of the project, as well as the resource requirements, availability, and allocation. You should also identify and mitigate any potential constraints, conflicts, or delays that may affect the schedule and resources. You can use various tools and techniques to plan the schedule and resources, such as Gantt charts, critical path analysis, or resource leveling.

5 Communication and reporting

Another important aspect of planning and budgeting for facility management projects is to establish a communication and reporting plan for the project, based on the scope and stakeholders. The communication and reporting plan should specify the frequency, format, content, and channels of communication and reporting, as well as the roles and responsibilities of the communication and reporting team. The communication and reporting plan should aim to keep the stakeholders informed, engaged, and aligned on the progress, performance, and issues of the project.

6 Monitoring and evaluation

The final step in planning and budgeting for facility management projects is to monitor and evaluate the project, based on the objectives, budget, and schedule. The monitoring and evaluation should measure and compare the actual results and outcomes of the project with the planned ones, using relevant indicators and metrics. The monitoring and evaluation should also identify and analyze any variances, deviations, or problems that may occur during the project, and propose and implement corrective actions or changes if needed.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?