Cash Flow and Progress Pacing
Throughout the project lifecycle, costs will vary from one phase to another. The graphs below will give you an idea of how costs fluctuate as you progress through the phases:
- Pre-design (PD)
- Schematic design (SD
- Design development (DD)
- Construction documents (CD)
- Bidding & negotiation (BN)
- Construction contract administration (CA)
The varied costs reflect variations in pacing. Keep in mind that the construction contract administration phase will span the course of a year or more. During the design phases, project pacing will be heaviest, meaning the architects are most intensively involved.
Pauses in progress typically occur after reaching each milestone, especially during permitting within the bidding and negotiation phase, when municipal authorities control the schedule. The general contractor (GC) will determine the pace of construction and thus cash flow during the CA phase.
We often complete and present the pre-design, schematic design, and design development phases to the client, whereas the construction documents phase includes multiple check-ins. Again, the initial phases are the most resource-intensive, as we focus on nothing but the design of your project during that time.
We’ll bill you monthly for the work hours we incur.
The “Phase % Allocated” graph below shows you how much budget is typically allocated per phase. The next graph, “Phase Completion % of Total,” shows you how the budget combines from one phase to the next, progressing to completion and 100% billed.
