Although nurse executives are very competent in planning and managing capital and operational budgets, many do not have knowledge or skills in project budgeting for healthcare design and construction projects. This article defines project budget terms
and introduces a quick method of determining a preliminary estimate of probable costs associated with a healthcare design and construction project. The proposed methodology is not meant to replace the rigor of a comprehensive cost estimation prepared by a contractor or professional cost estimator, but it does provide the nurse executive with the tools to determine where project- related expenses can be anticipated. The budgeting tool also outlines areas of the budget that nurse executives must anticipate for planning purposes during the project planning and management process. A clear understanding of project budgeting terms, line items to anticipate, and the methodology in estimating the total project cost will facilitate the nurse executive’s communications with other members of the C-suite, the board of directors, and other decision makers in the organization.