Construction job costing: budget, commitments and actual cost
Cost reporting becomes useful when each expense, commitment and approved change belongs to the correct project and cost category.
Budget versus commitments
Committed cost identifies contracted obligations; actual cost records spent or incurred amounts. Do not add full commitments to actuals without removing the overlapping paid portion.
Forecast before the project is over
Compare approved budget to actual plus remaining cost to complete. This gives a forecast final cost rather than only showing what has already been spent.
Use the free variance calculator
Enter your own budget, actual cost and estimated cost to complete to review forecast variance. The calculator stores no project data.