It is essential to have a solid understanding of the factors that contribute to the success of a project.
It can be challenging to make well-informed decisions regarding the entirety of your project if you are unsure of what you consider to be of value and have not effectively determined your budget. This is why understanding the difference between project budget, and value is one of the steps in getting there. Here is an easy way to tell the difference between the two!
The Project Budget
As explained in one of our earlier blog posts, a project budget is the total amount of money that has been set aside or made available to carry out the project. This includes everything that is required to construct your project to its completion. It is what you use to purchase all the necessary elements you need to build your project, such as the land, the services, the materials, the fees, and even the money you need to hire professionals to help build it.
Check out our previous blog to find out what factors to consider when it comes to coming up with your project budget here (hyperlink to oct 8 content)!
The Project Value
The value of the project encompasses a broader number of scenarios than your budget does. However, to put it simply, it is the perceived amount you will benefit from once the project is finished. Consider it to be the sum of money someone is willing to pay for a property and what the seller is willing to take in exchange for the property. Unlike the project budget, which can be estimated more easily, determining a project's value is more complex. It can vary greatly depending on when and how the evaluation is carried out. However, this does not imply that one outcome is more reliable than the other! A property's valuation may be influenced by many factors, including the community in which the project is located, economic factors, sustainability, and so on. Considering the relevant market and circumstances, this gives you how much the project is worth at a given time.
It is not always easy to differentiate between the amount that something will cost you and the value it will bring you. Nevertheless, these two things couldn't be more different. It is essential to have a firm grasp of the differences between the two. After all, we grow better through learning and assessment to better bring our goals to reality.
Find out how you can build your dream home into reality with JCVA! Email us at firstname.lastname@example.org or visit www.jcvassociates.ph to learn more about our services.