Final Cost Forecast – With the final cost forecast, you can clearly identify and list all project changes, along with explanations, highlighting the differences between the original budget and the final outcome. The final cost calculation is essentially formed “automatically” during the project. You can also present different change scenarios (forecast memos) to all relevant project stakeholders—enabling proactive and timely decision-making.

Additional and Change Work – “One’s profit margin is another’s budget overrun.” Additional and change work is closely linked to forecast memos. Time is money, and when a need for change is identified early, there’s always a greater opportunity to find a more cost-effective solution within the project.

Uncommitted Work – These cannot be identified or understood without commitment management. When something unexpected occurs in a project, uncommitted work is the only area where money hasn’t yet been allocated—meaning it’s still open to redesign. Corrective actions can vary greatly depending on the situation, such as renegotiating contracts, altering structural solutions, changing materials, re-tendering, and more.

Risk Management – Forecast memos are an excellent tool for managing risks, as well as for their classification and financial evaluation. Proactive and transparent communication reduces the likelihood of risks materializing. Analyzing, addressing, and preparing for risks in advance significantly lowers their impact—especially when done collaboratively with all relevant stakeholders.

Budget – Mine data from completed projects (post-calculation data). Learn from the past to improve future estimates, and focus on the cost codes and items that have historically been most prone to error. Create more reliable budgets—and therefore more successful projects. Manage contingencies and easily reallocate budget funds between cost codes. “After the budget is entered, only the forecast matters.”

Actuals – Always arrive on time according to the payment terms of orders. Actuals have no influence in the cost control process and therefore do not function as an element of cost control. “Don’t drive forward while staring into the rearview mirror—stay focused on the windshield and steer purposefully toward your destination.”

Final Cost Forecast – With the final cost forecast, you can clearly identify and list all project changes, along with explanations, highlighting the differences between the original budget and the final outcome. The final cost calculation is essentially formed “automatically” during the project. You can also present different change scenarios (forecast memos) to all relevant project stakeholders—enabling proactive and timely decision-making.

Additional and Change Work – “One’s profit margin is another’s budget overrun.” Additional and change work is closely linked to forecast memos. Time is money, and when a need for change is identified early, there’s always a greater opportunity to find a more cost-effective solution within the project.

Uncommitted Work – These cannot be identified or understood without commitment management. When something unexpected occurs in a project, uncommitted work is the only area where money hasn’t yet been allocated—meaning it’s still open to redesign. Corrective actions can vary greatly depending on the situation, such as renegotiating contracts, altering structural solutions, changing materials, re-tendering, and more.

Risk Management – Forecast memos are an excellent tool for managing risks, as well as for their classification and financial evaluation. Proactive and transparent communication reduces the likelihood of risks materializing. Analyzing, addressing, and preparing for risks in advance significantly lowers their impact—especially when done collaboratively with all relevant stakeholders.

Budget – Mine data from completed projects (post-calculation data). Learn from the past to improve future estimates, and focus on the cost codes and items that have historically been most prone to error. Create more reliable budgets—and therefore more successful projects. Manage contingencies and easily reallocate budget funds between cost codes. “After the budget is entered, only the forecast matters.”

Actuals – Always arrive on time according to the payment terms of orders. Actuals have no influence in the cost control process and therefore do not function as an element of cost control. “Don’t drive forward while staring into the rearview mirror—stay focused on the windshield and steer purposefully toward your destination.”