Article
Construction Project Cost Control: Budget vs Committed vs Actual, Explained
How budget, committed and actual cost fit together, how to forecast final cost by cost code, and a monthly review routine, with a worked example.
Project Cost Control & Commercial Management
Project budgets, contracts and payment certificates
Project Cost Control & Commercial Management ties cost plans, vendor contracts, change orders and payment certificates to each project. Teams see what is budgeted, committed and certified before the next payment goes out.
Project cost control and commercial capabilities
Overruns often surface late because the budget, subcontracts, variations and payments are recorded in different places. Comparing invoices with the budget shows what has been paid, not what is still committed.
Cost breakdown structures
Group project costs into cost groups and elements, so a variance can be read at a level where a manager can act on it.
HYP ERP
Cost planning, monitoring and analysis
Set the financial baseline for project activities, then review recorded costs and commitments against it during execution to find the areas that need closer attention.
HYP ERP
Subcontracts and contract change orders
Hold supplier and subcontractor agreements in the project, and record each change order with its commercial effect on the remaining budget.
HYP ERP
Project purchasing and approvals
Follow project purchase requests, contracts, invoices and payment documents through their established approvals, so actual activity is read against the agreed cost baseline.
HYP ERP
Payment requests and certificates
Process requests for payment, prepare and release payment certificates, and handle exceptions through controlled review, so finance knows what is due and why.
HYP ERP
What's included
What's included in Project Cost Control & Commercial Management
The cost, contract and payment screens in the Projects System module.
Cost planning
- Investment programs
- Cost breakdown structure
- Projects cost planning
- Cost monitoring and analysis
- Project inquiry and projects summary
Contracts and payments
- Vendors contracts
- Contracts change orders
- Requests for payment
- Payment certificates with release
Project finance
- Purchase invoices for projects
- Recovery and retentions details
- General requests from the projects department
How project costs move from plan to certificate
Plan
Set cost groups, elements and the approved cost structure.
Contract
Link purchasing and vendor contracts to the relevant scope.
Vary
Review change orders and their impact on the remaining budget.
Certify
Review and release payment requests and certificates.
From the blog
Guides on this topic
Article
Subcontractor Payment Certificates: Tracking Retention, Advances and Deductions
Subcontractor payment certificates explained: retention, advance recovery, contra-charges, a worked example, and VAT on retention in the UAE and KSA.
Project Cost Control FAQs
Can HYP ERP build a cost breakdown structure (CBS) for a project?
Yes. HYP ERP Project Cost Control & Commercial Management organizes project costs into cost groups and elements, and uses that cost breakdown structure as the baseline for planning, monitoring and analysis.
How does HYP ERP track committed cost, not just actual cost?
HYP ERP tracks commitments by keeping vendor contracts, change orders and purchase requests inside the project, so commercial teams review committed and approved costs alongside recorded spend and see what may still affect the remaining budget.
Does HYP ERP manage variations and change orders?
Yes. HYP ERP Project Cost Control records vendor contract change orders against the project, so each commercial change is documented and its implications for the remaining budget can be reviewed.
Does HYP ERP support payment certificates for subcontractors?
Yes. HYP ERP Project Cost Control handles requests for payment, payment certificate preparation and release, and exceptions, so certified amounts are reviewed and approved before finance processes the payment.
Check commitments before the next certificate is paid
See how HYP ERP connects a project's budget, contracts, variations and payment certificates.