How Variance Analysis Helps Manage Project Costs
Regular variance analysis allows contractors to identify overspending or cost-saving opportunities early in the project. By comparing the projected budget to actual expenses, project managers can make informed decisions to bring the project back on track and ensure profitability.Best Practices for Conducting Variance Analysis
Use financial management tools to run regular variance analysis reports, comparing actual spending with budgeted amounts. Frequent analysis allows for timely corrective actions, such as reallocation of funds or adjustments to the project timeline.Related Terms: Cost-to-Complete