Budget · VE

Continuous budget tracking from concept through detail design, with value engineering trade-offs captured as data.

What it is

Budget evolves from concept design (CD) through detail design (DD) to final. Value engineering reviews happen at each milestone. The module captures cost/time/quality trade-offs as structured data so VE decisions are auditable. Variance against the DD-locked base is monitored continuously; alerts fire when WO commitments approach budget thresholds. Extending Bandhoo for budget continuity rather than replacing.

Inputs

Triggers

·Concept design approved — concept budget initiated
·Detail design closure — DD budget finalisation
·BOQ updated from M10
·WO release in M14 (commitment update)
·Value engineering review milestone
·Variance threshold breach — alert fires

Data reads

·Concept design package from M07
·BOQ versions from M10
·Rate library and historical comparables from Bandhoo
·Committed WO values from M14
·Amendment values from M15

Artefacts consumed

·BOQ snapshots at concept, CD, DD milestones
·VE proposals from Design and DCO
·Cost-impact analyses for spec deviations
·Bandhoo rate library snapshots

Tools & Techniques

Methods

·Budget evolution tracking — concept to CD to DD to final
·Value engineering workflow with cost/time/quality trade-off captured as data
·Variance monitoring — DD baseline against running commitment from WOs and amendments
·EWS on commitment threshold breach
·Sensitivity analysis against rate, quantity, scope variation

Policies

·budget governance policy — sign-off thresholds at each stage
·VE policy — when to run, who decides, what trade-offs are acceptable
·Variance reporting policy with alert thresholds

Decision rules

·DD budget locks the project base; later changes are amendments
·VE proposal requires cost/time/quality trade-off documented
·Variance above threshold triggers PMO review
·Commitment exceeding budget blocks new WO release until reconciled

Outputs

Artefacts produced

·Concept budget
·CD budget
·DD budget (project base, locked)
·VE proposal register with trade-off data
·Variance reports against DD base

Data writes

·Budget snapshots stored against design milestones
·Commitment running total updated on WO release and amendment

Downstream triggers

·DD budget approval enables tender release in M14
·Variance alerts trigger CPT and DCO review
·VE approvals trigger BOQ updates in M10 and amendment workflow in M15

Stakeholders

DCOOwns budget at all stages and VE process
FinanceBudget approval and variance monitoring
DesignVE input — cost/time/quality trade-offs
PMOVariance reporting

The flow

01Concept budget tied to architectural concept plan
02CD budget refinement
03DD budget finalisation, signed off as project base
04Value engineering reviews at each milestone
05Continuous monitoring against WO issuance and billing
06Variance alerts when commitment exceeds threshold

State change

Before

Budget at concept does not survive contact with detailed design; VE late.

After

Budget evolves on the record; VE proposals captured; variance surfaces early.

Real-world example

Worli — CD budget ₹152 Cr (Jan). DD budget ₹147.8 Cr (May). VE round in March reduced concrete grade in non-load-bearing slabs, saving ₹4.2 Cr without quality compromise. Portfolio-level variance −0.8% (47 projects).

Artefacts

·Concept budget
·CD budget
·DD budget (locked base)
·VE proposal register with trade-off data
·Variance reports

Pain today

Budget at concept does not survive contact with detailed design. VE decisions are taken late when scope is hard to reduce. Variance triggers come after commitment.

Integrations

Bandhoo (commitment tracking)