Actual cost in project management refers to the total expenses incurred for a project, including labor, materials, and overhead. It helps track spending against the budget.
A capital budget outlines costs for acquiring or upgrading assets in construction, managing long-term investments for growth and ROI.
A change order is a written document that modifies a contract’s scope, cost, or schedule. It ensures changes are reviewed, approved, and documented properly.
A Change Order Form is a document used in construction and project management to formally request and approve changes to the scope, cost, or timeline of a project.
A Construction Cost Estimate calculates all expected project costs, including materials, labor, equipment, and contingencies, helping owners and contractors budget effectively.
Project contingency is a strategic financial reserve in budgets that covers unexpected costs and risks during execution. This management tool protects construction projects by handling unforeseen changes and maintaining progress.
A Cost Code is a unique identifier used in construction and project management to categorize and track project expenses.
Estimate at Completion (EAC) forecasts a project’s total cost based on actual performance, remaining work, and budget adjustments, helping project managers prevent overruns.
A Provisional Sum is a budget allocation within a construction contract for specific parts of the work that are not fully defined at the time the contract is signed.
A Schedule of Values (SoV) is a contract-specific, itemized table outlining all construction project components and associated costs, serving as a financial roadmap for payments by linking tasks to monetary values.
Value for Money (VFM) refers to the optimal use of resources to achieve the best possible outcomes. In construction, it means balancing cost, quality, and efficiency to ensure projects deliver long-term benefits, not just the lowest price.
