Land Development Playbook

KEY TAKEAWAYS

Q & A

A What are Budget Variance Memos (BVM’s) and why are they important?

A Budget Variance Memos (BVM’s) are required if current or future phases have greater than a net $100K increase from the last approved budget. A Budget reallocations from Contingency up to development line items require NLD/LSS approval when greater than $100K and a Budget Variance Memo if greater than $250K. A Remaining funds in each cost code should be transferred to contingency after each scope of work has been fully contracted. A If there is an LD Budget variance requiring a memo, create a draft BVM in advance of the LD2 budget meeting. A Distribute the updated LD2 Sheet and draft BVM to the LD2 budget meeting group prior to the start of the meeting. A Finance is responsible for validating all LD Budget information and supporting financial tables for accuracy. A The division must continue to review LD Budgets on all closed-out communities until all bonds/ sureties have been returned to Century and HOA has signed off on all work. A Enforce contracted scopes of work and review the budget before proposing a budget increase due to a change order. A All remaining funds inside cost codes will be moved to contingency during the management of an active LD Budget (after a contract is executed), leaving no contingency in the cost codes. A Other project plan sets (dry utilities, landscape, and amenity plans) would be completed later may require a higher level of contingency.

A Until all bonds/sureties have been returned to Century and the HOA has signed off on all work, the divisions must continue to carry out what task?

A Where must all remaining funds inside cost codes be moved to?

27 | Land Development Budget | LAND DEVELOPMENT PLAYBOOK

LAND DEVELOPMENT PLAYBOOK | Land Development Budget | 28