System parameterization of the budget model of investment construction project

Abstract

This article reviews the definitions of budgeting and budget model, their role in cost management of investment construction projects, and the subject field of budget modeling of a project. The author indicates the relevance of implementation of budgeting in management of investment construction projects, as well as the factors of low efficiency of this process. The subject of this research is the system variables of the budget model: functions, content, structure, levels, quantitative and qualitative indicators, standards, methodological and analytical parameters, and financial modeling processes. The peculiarity of the subject of research lies in systematicity, need for consolidation of budgets in various aspects, and compatibility of the local budget models for creating a reasonably universal system for supporting managerial decision-making. Description is given to the basic methodological provisions of the development of budget models of investment construction projects. This article is first to elaborate on the analytical parameters of budget modeling of investment construction projects, as well indicate various parametric levels in reference to each other. The author develops the financial planning processes and the pattern of project budgeting, as well as adapts the cybernetic principles of “input – output”. It is suggested to use a special accounting scheme in the budget model of the project, which is based on the managerial accounting policy approved by the subject. For achieving compatibility of the methods of financial administration, the author offers to coordinate the cost pool in estimates and budgets, maximal expenditure accounting, reduce scheduling uncertainty, and consider dynamic factors. The budget model is viewed as an input parameter of cost control over the investment construction projects. The vectors of further improvement of budgeting of investment construction projects are proposed.