Proforma Analysis / Hard & Soft Cost Budgeting

A pro forma confirms that the project works. A budget details what it will cost to build. PH&C prepares the budget and tests it against your financial model, and has the ability to offer value engineering to reduce project costs if needed while the design can still change.

What PH&C handles

• Hard costs: site work, building construction, and tenant improvements.
• Soft costs: design and engineering fees, permits and approval fees, legal, insurance, financing, and brokerage.
• Contingency sized to the stage of design and named for the risks it covers.
• Comparison of the budget against your return targets, rents, or sale assumptions.
• Reconciliation each time the design, the program, or the estimate changes.
• Alternatives that bring cost back in line, with the trade-offs spelled out.

What you get

• A budget organized the same way your lender and your accountants organize the project.
• Variance reports that flag a change before it is committed.
• Clear separation of site, building, and tenant scopes, which keeps responsibility and cost easy to follow.
• A basis for decisions such as reducing scope, changing materials, or phasing the work.

How it connects

The budget feeds the monthly work in contract and budget management during construction. The timing of the same dollars is covered in cash flow analysis. Early numbers come from an opinion of probable cost, and detailed pricing from estimating and value engineering. If your design and your pro forma no longer agree, send us both.