5.4.3 Sample Project Budget 1*

Table 4.1 illustrates a sample portion of a project budget. In this table, for each project activity both the direct and indirect costs are identified, and budget lines are assigned. This preliminary budget seeks to identify the direct costs and indirect costs such as overhead expenses. It may become necessary to break the overhead expenses to finer levels of detail such as expenses relating to health insurance and so forth. However, breaking a project expenses to this finer level of detail is usually more appropriate when a detailed project budget is developed.

Table 5.1 Sample Portion of a Project Budget

	Budget
Activity	Direct Costs	Overhead	Total Cost
Survey	4,200	800	5,000
Design	6,900	1,100	8,000
Clear Site	4,500	1000	5,500
Foundation	5,250	1250	6,500
Framing	9,000	3,000	12,000
Plumb & Wire	3,500	1,500	5,000

*Please Note: The activity designations in the sample projects were adapted from Pinto, J. K. (forthcoming). Project Management: Achieving Competitive Advantage. Upper Saddle River, NJ: Prentice Hall.Used with Permission.