Texas Tech University

Budget Development

The budget is a detailed statement outlining estimated project costs to support work under a grant or contract. The preparation of a budget is an important part of the proposal preparation process and should be considered as you are developing the project itself. This is important for two reasons:

  • Developing your budget alongside your narrative assures that the budget items are specifically related to activities described in the proposal.
  • Reviewers often examine the budget in the context of the program narrative, evaluate whether sufficient and appropriate personnel to perform the work have been included, and match the overall budget to the work proposed.

Research expenses can be divided into direct costs, which are specific line items in a budget such as salaries and fringe benefits, equipment and travel, and indirect costs (Facilities and Administrative costs), which are broad costs incurred for common or joint objectives, such as building/equipment depreciation and general administrative costs. Indirect costs are paid as a percentage of direct costs, with the amount negotiated by the University and the sponsor.


Have questions about a step in this process? Find your Pre-Award and Post-Award contacts. 

Office of Research Services