Construction Cost Overrun Analysis

When Budget and Actual exist, calculate Actual - Budget.

What It Calculates

Construction cost overrun analysis compares Budget and Actual only when both are present for the same scope. The calculation is Actual - Budget.

InputUseOutput
Budget or BOQ onlyBaseline evidenceNo overrun calculation.
Budget and ActualComparable valuesActual - Budget.
Actual > BudgetVariance reviewOverrun finding with citation.

The Formula

If Actual is greater than Budget, the result is an overrun. Constrovet keeps it separate from baseline budget.

This prevents contract value, planned spend, BOQ value, work done, or advance recovery from being mislabeled as leakage.

Essential Data Files

  • A budget, estimate, BOQ, approved baseline, or planned spend figure.
  • An actual, paid, consumed, billed, or incurred amount.
  • A source reference showing file, page or sheet, and quoted span.
  • Context that identifies the work package, period, item, or project component.

Why Citations Matter

Overrun findings can affect board, lender, contractor, and recovery discussions. Citations make the number reviewable.

Is overrun always a cash leakage?

No. The calculation identifies a variance. The category depends on the available evidence and should not be expanded beyond it.

Can planned spend be tagged as leakage?

No. Planned spend, contract value, BOQ value, cumulative work done, and advance recovery are baseline budget signals.