Difference between budgeted and actual project costs. Positive variance indicates under-budget delivery.
Cost Variance is defined as: Difference between budgeted and actual project costs. Positive variance indicates under-budget delivery.
Cost Variance is typically measured using data from a Job Costing System. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Cost Variance is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your Job Costing System and delivers a live Cost Variance dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Revenue minus direct costs (labour, materials, subcontractors) as a percentage of project revenue. The primary profitability indicator per job.
Difference between planned and actual project completion dates. Measures planning accuracy and site management effectiveness.
Number of defects or rework items per project or per $M revenue. A quality indicator that directly impacts margin and reputation.
In 48 hours, you'll have a live Cost Variance dashboard connected to your Job Costing System.