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7.0 Budgeting: 4 Budgets to Prepare

7.1 Budget No. 1 - FM, building structure and services

7.1.1 Ringley has proven its ability to validate and bring forward budget omissions through various
consultancy projects and has experience of pricing numerous schemes with a wide array of facilities
(sports courts, swimming pools, areas of outstanding natural beauty, woodlands, community
centres, gyms, cricket pitches, weirs, river frontage and canal side responsibilities). We have vast
data to benchmark costs and 20 years of experience in budgeting for a wide range of new build
developments. In the early years budgeting will be somewhat tied to procuring equipment installers
to maintain their equipment, even so, on-site tendering days need to be arranged to prove market
pricing.

7.1.2 By separating the FM, building structure and services budget from the rental budget this gives clarity
and makes for easier reconciliation to the service charge accounts, particularly for commercial
occupiers. It also makes for better benchmarking of tenant recoverable items and deposit
deductions.

7.1.3 For commercial users FM budget service charge contributions are invoiced direct. For Build to Rent
Client retained areas the options to maintain operational management cashflow are:
(a) monthly or quarterly advance billing, OR,
(b) agreeing a monthly retention from rents collected.

7.1.4 The building in use budget will generally follow the following schedule(s) or heads of charge:
Estate areas shared amenity areas for commercial & residential
Structure charge external structure all units (area basis)
Residential units the Build to Rent units only
Commercial units commercial units only

7.1.5 Our expertise in budgeting includes bringing forward variations to ill conceived structures; one
example we brought forward and the Client adopted is illustrated overleaf:

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