Chapter 3: Budgeting — Budgets for Multiyear Construction Projects

The development of budgets for multiyear construction projects has two major stages. The first stage involves extensive planning to identify a facility's needs. This may be accomplished through the process, outlined earlier in this chapter, on financial forecasting and planning. A committee may be created specifically for capital planning or as part of a strategic planning effort. Identification of capital needs may also come from maintenance staff or from a contracted evaluation. Evaluations should also identify the potential costs of a particular program. From these inputs—needs and cost—an agency can determine whether to pursue a construction project. Once this decision is made, the second stage of budget development—exploring project financing—can begin. This process does not necessarily need to be incorporated into the annual budget process.