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Commercial & contracts

Control cost against budget

Hold the job to its number: fix the priced bill as the budget baseline, track committed and actual spend against it trade by trade, and report the variance while there is still time to act.

3 steps12 minGeneral contractorCost consultant / QSProject / construction manager

How it works, step by step

3 steps across the platform - what you do at each one, and why it matters.

1

Set the budget baseline

BOQ

Take the agreed priced bill and fix it as the cost budget, broken down by trade or cost code, so every later commitment and invoice has a target line to be measured against.

Why: You cannot control spend without a fixed line to control it against, and a budget that keeps drifting hides overruns as fast as they appear. Locking the baseline is what makes a variance mean something.

InAgreed priced billCost code structureOutFixed budget baselineBudget lines by trade
2

Track committed and actual

Finance

Book orders and subcontracts as committed cost and invoices and site records as actual cost, each against its budget line, so you can see budget, committed and spent side by side.

Why: Committed cost is the overrun you have already signed for but not yet paid, and it is where jobs quietly go over before a single invoice arrives. Tracking it, not just actuals, is what gives you real warning.

InBudget baselineOrders and subcontractsInvoices and site recordsOutCommitted costActual cost
3

Report the variance

Reports

Produce the cost report showing budget against committed and actual with the forecast final cost per trade, and flag the lines trending over so the team can act on them by name.

Why: An overrun caught in month four can still be steered by reworking scope or renegotiating; the same number found at final account is only a loss to explain. Reporting variance early is the entire point of cost control.

InBudget baselineCommitted and actual costOutCost variance reportForecast final cost

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