Ways and Means
Because of the high cost of building, equipping, and maintaining science facilities, the specter of ways and means -- budgeting, financing, and fund-raising -- will always be present in your discussions. As financial and development officers have been working with other campus leaders throughout the long process of planning your new spaces and structure, they will be able to make decisions about the ways and means of the project to keep your planning focused and on track.
The Project Budget
The project budget is an important document from both the construction and the development perspective. It includes construction costs and other costs directly and indirectly related to the project. The project budget must be sensible, arrived at in a rational manner by members of the project committees and their agents and consultants. It should support the facility program and stay within reasonable limits of your institution. The project budget illustrates, to prospective donors and to the campus community, the care with which you have proceeded in planning, and how this single project fits into institutional planning and priorities.
A comprehensive and concise management tool, the project budget is a summary of a multitude of decisions about the scope and quality of a major capital project -- your new science facility. Establishing the budget, particularly the construction budget, is a delicate balancing act, one that requires attention both to the facility program that has been defined and the resources available. How comprehensive your project budget is depends on the specific circumstances of your institution. As you develop the project budget you should think about whether or not to include: equipment, furnishings, fees for architectural, engineering, and consultant services, institutional contingencies, fund-raising expense, and short-term interest expense.
The project budget should be under review by the project team throughout the entire project. Critical moments that the budget should definitely be considered are at the end of the schematic design phase; at the end of the design development phase; at the point when 50-70 percent of the construction documents are complete; and when the construction documents have been sent out to secure bids from the contractor and subcontractors.
- Effective Budget Development
- Special Considerations
It is important in the planning stage to address the potential impact that the new spaces will have on your operating budget. The reasons are obvious: if annual operating costs increase, someone on your campus will have to pay attention to securing an equivalent increase in annual revenue and its source. In making these operating budget estimates it is critical to consider first intangible benefits and costs that might accrue.
- Intangible Benefits and Costs
- Operating Budget
- Capital Funds and Costs
Fund raising is an important aspect to the building process of a new facility. Many schools do not have the funds readily available to construct or renovate a new facility, and must work hard to find ways of raising the appropriate funds in order to secure the creation of the building. Your campaign to raise millions for science facilities is an opportunity to communicate with those who already support your institution. It is also an opportunity to reach out to those, both inside and outside of the institution, with the potential to be major donors.
- Campaign Leadership
- Fund-Raising Activities
- Sources of Gifts and Grants