Controlling Project and Contract Cost Before It Is Too Late

Begin with a cost structure connecting contract items to activities, materials, subcontractors, and responsibility centres. Without it, expense accumulates in broad accounts.

Freeze an approved baseline and record changes as variations with value and schedule impact. Editing the original estimate erases decision history and hides variance.

Link purchase requests, commitments, and expenses to contract or activity before approval. Committed cost then becomes visible before the supplier invoice arrives.

Monitor actual, committed, and forecast cost alongside progress, claims, and collection. Early warning comes from estimate at completion and cash flow—not accounting profit after the end.