Budgeting, Costing and MIS Job Profile
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Job Description and salary details for Budgeting, Costing and MIS Job Profile

Last Updated on April 18, 2023 by Admin

Budgeting, Costing and MIS Job Description and Salary Details

The construction budget is the amount of money allotted for a specific building or remodeling project. Construction budgets are used to anticipate all the costs and expenses of the building process. A budget is usually tracked through a form or spreadsheet.

A budget is a statement of the amount of money that is available to spend over a period of time, or on a specific thing, such as a building. It may include an outline plan for how that money will be spent, and a breakdown of the items it will be spent on.

A project budget can be established by:

  • Assessment of projected income and expenses through the life of the project.
  • Comparison with similar projects.
  • Assessment of the funds available.
  • Pre-design analysis of requirements.
  • Analysis of preliminary design

The budget is set by the client and is distinct from cost plans prepared by a cost consultant which are likely to focus on the construction cost.

The client’s total project budget may include:

  • The construction cost.
  • Land or property acquisition.
  • Approvals fees.
  • Planning costs (Section 106 Agreement or Community Infrastructure Levy).
  • Financing costs.
  • Site investigations.
  • Fixtures, fittings, and equipment.
  • The cost of decanting and relocating, including costs associated with moving staff.
  • Contracts outside of the main works.
  • Consultant fees.
  • Inflation
  • Contingency

It is common on projects that the project budget and the project brief diverge over time and it is for this reason that careful cost control is important. It is important that the client makes clear what costs should be monitored by the cost consultant and what will remain within the control of the client organization.

Budgeting and Cost Estimating for Construction Projects

Budgeting and cost estimating are essential tools in the construction industry and play a central role in both the pre-construction and construction phases of a project. Best practices dictate a total project budget should be developed as early as possible in a project.


Cost management in construction should include the following tasks:

  • Develop a total project budget as early as possible
  • Analyze project requirements and drawings to verify the scope
  • Oversee contractor in the performance of detailed line-item construction project cost estimate
  • Determine true cost and time parameters for obtaining all jurisdictional approvals
  • Prepare soft cost budget including all consultants
  • Analyze utility, permitting, testing and inspection costs
  • Establish FF&E design and budget
  • Allocate sufficient contingency and cost escalation
  • Determine and analyze cash flow requirements
  • Oversee value-engineering and improvements in cost and schedule
  • Implement ongoing controls for real-time tracking of cost impacts

Construction projects, by their very nature, can be burdensome, both financially and logistically. Yet a project’s success often hinges on creating and sticking to a comprehensive budget. Creating a construction budget allows you to prepare for potential delayed completion dates, owner modifications, unforeseen structural problems, and other hidden costs. A little time spent estimating construction costs saves a lot of time (and money) in the end.

Project Planning and Budgeting

The first major step in creating a budget is to sit down with the client/owner of the project and discuss the specifics of the project. The owner should have an achievable vision for the property, including its primary use, general design ideas, desired completion date, and a rough cost tolerance.

One should gather as many specifics from the owner as possible to ensure that the estimated construction costs are relatively close to the finalized budget. Once the budget approaches finalization, you should begin blueprint drawings, either through internal means or via a contract with an outside vendor. Note that this budget – even if not completely finalized – may later be used as an effective tool for measuring how the project is performing at a given point.

Basic Budget Considerations

Though some construction projects may be more complex than others, you may find the following list of general budgetary considerations helpful:

  • Permit issues include adequately addressing permitting involving zoning, survey, land disturbance, electrical, mechanical, plumbing, environmental, and department of transportation.
  • Insurance considerations include whether general liability insurance is sufficient or whether job-specific or business-specific policies are necessary. Also, other important policies are builder’s risk, wind, flood, and inland marine for materials purchased but not installed.
  • Blueprint drafting and review issues include payment to architects and engineers, engineering, design, and development of a bid set, client review and review times at any given municipalities.
  • Interest and fees may be difficult to estimate, but managers should account for legal and management fees.
  • Site preparation may include the cost of excavation as well as labor and machinery costs as well as erosion control and monitoring of erosion control.
  • Foundation issues include soil condition, the stability of the ground, and compaction requirements.
  • Exterior considerations include windows, doors, seismic zone, and insulation (sound or temperature) requirements and design and review boards for the local city.
  • HVAC issues include accounting for building type, height, occupancy, and other special system requirements, load requirement and manufacturing city.
  • Interior considerations include floor-to-ceiling heights, spatial area, and special finishing requirements.
  • Contingency allowances a way to account for unforeseen costs. A good rule of thumb is to reserve at least an extra 5% of the budget for such costs.

Job Roles in Budgeting, Costing and MIS Profiles

  • Costing and Budgeting
  • Budgeting /Planning/ Contract Management
  • Project Budgeting Manager
  • Budgeting and planning
  • Cost Management
  • Cost Controller
  • Costing and MIS
  • Budgeting and forecasting
  • Project Accountants

Read About: Various Construction Job Title and Descriptions In the Construction Industry

The position shall be responsible for maintaining accurate cost records and for budgeting activities in the Plant and for ensuring control on the conversion cost, under the guidance of the Plant Finance Head. The positions shall be responsible for implementing standard costing and activity-based costing systems providing relevant MIS reports.


Key Performance Areas

  • Implementation and / or improvement of activity-based costing and accounting systems
  • Identifying Cost Reduction opportunities – Reduction of Fixed Cost & Conversion from Fixed to Variable, scrap and indirect material cost
  • Daily, weekly and monthly monitoring that of Conversion cost and Inventory
  • No. of process improvements, QIP’s and Kaizens
  • Budget preparation, tracking and variance analysis
  • Compliance towards statutory audits

Learn More: Budgeting and Scheduling Projects

Key Activities & Responsibilities


  • Facilitate the annual budgeting process with the Division heads, Plant Finance Head and other support functions
  • Initiate and coordinate financial planning and budgeting activities at the different divisions and sectors for the plant
  • Evaluate the various Capex proposals by the departments and develop them further if found suitable

Budgeting and Fund Management Control

  • Initiate, coordinate, and prepare Plant specific budgets in line with the guidance provided by Corporate
  • Conduct the annual budget meeting with the Department heads, Plant Finance Head and other support functions
  • Liaison with the Department Heads and support functions in submitting their projections and targets in a timely and accurate manner
  • Extract information of the financial performance of the business from the historical databases
  • Extract expenses information from the databases relating to direct costs, indirect costs, fixed costs and variable costs
  • Project the operating costs for production and the project execution by building various scenarios with variables like labor, material cost, time, etc under guidance of GM Finance
  • Conduct analysis of budget vs actual adherence to budgets for departments
  • Ensure control over expenses by regular feedback on budgets and actual expenses
  • Keep control over the Budgeted Capex and Actual Capex spends and highlighting any deviations
  • Participate with the Corporate Finance team in developing requirements for budgeting standards
  • Responsible for preparation of Annual Budget, Comparing it to actual results, and reporting on Variances=
  • Acts as an advisor to department managers in formulating their budget submissions, critical review of proposed Budget, identification of duplicate items and resolving conflicts and to bridge the differences.
  • To produce profitability statements based on every version of Gross Refining Margins (GRM) released by EPS and as advised/deliberated by senior management during finalisation of budget meetings.
  • Responsible for Cost Center Accounting, Budgetary Control in SAP. Implementation of proper controls in SAP for Monitoring of the budget.

Cost Management

  • Ensure implementation of standard costing and activity base costing systems in line with corporate guidance
  • Ensure reconciliation between the financial accounting and costing system to ensure seamless financial reporting and analysis
  • Perform product costing and raw material costing, to accurately assess product profitability
  • Provide required information for cost benefit analysis, transfer pricing in consultation with the Plant Finance Head
  • Ensure timely coordination and analysis of financial information including monthly financial results, preparation of recurring management reports, budgeting /forecasting support
  • Track and monitor Conversion cost on daily, week and monthly basis and highlight any deviations to key stake holders to discuss upon the resolution
  • Conduct physical inventory checks and resolve issues with regards to any variance if observed

Cost Audit

  • Keep Cost Records as required for Annual Cost Audit
  • Interact with internal and external auditors in completing audits
  • Ensure adherence to Statutory Requirement of Cost Auditor & Complete Cost Audit
  • Analyse BOM Vs Actual RM Consumption Analysis
  • Providing Key Financial Data to outside Agencies (as required)

Financial Accounting, Documentation, & MIS

  • Maintain costing and budgeting reports for the Plant
  • Ensure the high-level accuracy and timely submission of all MIS reports
  • Ensure accurate and timely SAP updation on FICO for all costing processes and activities, and monitor the quality of updation on SAP by the Plant team
  • Perform variance analysis in SAP reports
  • Key Responsibility for preparation of monthly MIS within the Target date.
  • MIS includes detailed analysis of various Financial information like Revenue, Cost of Raw Material, Operating Cost, and Interest
  • Cost to provide key information to management for support and decision making and to ensure overall operations are within budget.

Other common responsibilities include

  • Budgeting & MIS
  • Utility Costing
  • Related Party Disclosures as per Cost audit requirement
  • Comparison of P&L with Peers as well as Stanlow Refinery
  • Capex Budget monitoring
  • Opportunity to work with the leader
  • Opportunity to head the budgeting Tendering, bidding and award management on the basis of techno-commercial specifications
  • Formulating and implementing policies for the Contracts
  • Evaluating and recommending the guidelines of the contract
  • Liaising in Financial and contractual matters and finalizing the project cost
  • Ensuring BOQ and rate analysis given by the planning department
  • Overall responsible for end to end management of Contracts, Budgets, Planning, vendor management, Cost management, and claims.
  • Capability to deal with large size Contracting Companies, Vendors, PMCs. Strong knowledge of Contracts.
  • Develop and implement procedures/processes for contract management
  • Tender, Bid and Award management- Preparation of RFQs and RFPs for shortlisting and selection of Contractors / Vendors
  • Project Contract Management – Liaising in Contractual and Financial matters, Ensure validity of contractual requirements, Check Contractor`s valuation, Monitor Final contract cost estimates, finalize project cost and feasibility reports
  • Dispute Resolution – Managing dispute resolution through formal and informal dispute resolution channels by reviewing the contract.
  • Developing program-level budgets/tracking cost, cost at completion and various cost reports.
  • Track MIS for all documents (Tenders, Work orders, Change Orders / Amendments, Cancellations, Insurance policies, other statutory requirements.
  • Oversee site entitlement and due diligence effort for multiple new construction and remodeling projects across
  • Meritage’s entire portfolio of restaurants.
  • Participate in project scoping and budgeting of remodeling projects.
  • Manage all aspects of the due diligence process including but not limited to feasibility studies, geotechnical
  • Lead and manage a network of engineers, architects and other consultants in guiding each project through its
  • Governmental approvals process to obtain all permits/approvals required for a project.
  • Manage design consultants in engineering a project within the parameters of the approved site plan, budget, Owner criteria, and local codes.
  • Manage the bidding process with the design team and approved general contractors.
  • Coordinate and support the construction hand-off to the Construction Project Coordinator.
  • Communicate project status to project participants and stakeholders throughout the project to ensure critically
  • Components are not missed and risks are identified.
  • Should have worked in large reputed real estate /construction / contracting Organizations (a sterling track record in the related field of Budgeting & Planning)
  • Project Development , Bidding /Auction proposal, Business case analysis for SPV
  • Coordination with corporate for approvals,
  • Validation of Developer Contract & payment terms
  • Tracking of permits & Approval , Deposits , BG ‘s issued to Government bodies etc,
  • Monitor Development Project cost PO Approvals
  • Periodical review of Development Project viability & ensure the feasibility of evacuation extension
  • Project cost controlling
  • Budget /Forecast preparation
  • OIP Traking , QTY variance & proce Variance analysis
  • Project Budget relase & PO approval & post cal anayysis
  • Project Cost tracking ,Project Overhead fixed Costs controlling
  • Co-ordination Revenue consumption & inventory capitialization ,amortization, Project Profitablity anyalysis etc,
  • Establish and maintain the standard costing norms.
    Ensure proper management accounting Preparation of Process wise Costing,
  • Quantitative details & Inventory Valuation.
  • To provide standard costing to management for business decisions and pricing strategy.
  • Preparation of Budget and monitoring the actual performance and analyze the variance over budget.
  • Expenses analysis and its Control.
  • Periodically visit Plant and review the product wise costing.
  • Responsible for financial planning, forecasting & budgeting.
  • Formulating budgeted and actual Profit and loss accounts.
  • Responsible for financial projections, cash flow and fund flow analysis.
  • Reconciliation of management accounting with financial accounting.
  • Participate in various cross functional team for problem solving.
  • Proficient in preparation of Different MIS reports
  • Interact with Cost and Statutory Auditors.
  • To keep updated knowledge of accounting standards and commercial laws and share the same with the team members.
  • Preparation of various variance reports required by a head.
    Any other activity assigned from time to time.

Education Qualifications

BE/B.Tech in Engineering (Civil Engineering preferred) / MBA Finance

Salary Details


Average Salary (Cost Engineer) in India Rs 5,95,516

Average Salary (Cost Engineer) in the US $ $78,966

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