Spend to date shows the past. A useful cost report also shows what the whole job is likely to cost and which decisions may change that result.
Which costs are still missing from your monthly report?
Construction Cost Reporting: State The Basis
Show the report date, cut-off and how VAT and price rises are treated. Keep the agreed budget and transfers beside the forecast.
Label changes and allowances by status and basis. Keep claimed sums apart from assessed values and set a review date for open points.
Check The Full Forecast
As an example, a £1,000,000 budget has £820,000 ordered, £120,000 left to buy, £35,000 extra change and £20,000 risk. The forecast is £995,000, with £5,000 headroom.
These figures exclude VAT and show the method. Do not add payments already in order values or count a change again if it is in an order.
The bills show spend so far. Does the report show the work and risk still ahead?
- Orders
Start with the current commitment values.
- Work and changes
Add work left and changes once, on a clear basis.
- Risk and action
Show risk, budget gaps and the next decision.
Keep cash dates separate from the cost total and give each open point an owner.
Monthly Construction Cost Reporting Checklist
Before you issue the report, check these five points:
- State the agreed budget and each approved transfer;
- Match current orders to the work they cover;
- Show work left to buy, changes and risk once;
- Explain the move from last month and the gap to budget; and
- Name who must act on each open point and by when.
Keep the cash flow beside the cost forecast. A late payment changes when cash moves; it does not, on its own, change the price of the work.
Show The Moves And Next Steps
State the cause and source of key moves since the last report. Record consent for budget transfers and risk use.
Keep cash dates separate from total cost. Save the issued report and workings, then name who must act and by when to settle gaps or improve the outcome.
General guidance. Check your signed contract and the job facts. Get legal advice where needed.