Glossary
Out-turn Cost
Out-turn cost is the final actual cost of a construction project at completion, including all variations, contingency drawdown, and provisional sum reconciliation. Locked at project closeout.
Used in
How it's built up
Out-turn = original contract sum + approved variations − approved omissions + provisional sum reconciliation + contingency drawdown + final account agreement. It is the single number representing the entire project's commercial performance.
Out-turn is locked at project closeout via the final certificate. From that point, no further cost can be added — though the defects liability period may still adjust retention. The PCSR's out-turn column is populated at closeout and never changes.
Why it matters for the consultancy
Out-turn vs original budget is the most-cited metric of cost performance. A consultancy that consistently lands within 2% of budget builds reputation; one that consistently overruns by 10%+ loses repeat work.
The historical record of forecast vs out-turn at every monthly snapshot is also the consultancy's best dataset for improving forecasting. Most consultancies don't archive this systematically and lose the learning. The consultancies that do have a consistent advantage on bid stage.
Common pitfalls
- Locking out-turn before final account is fully agreed. If there's an unresolved dispute, locking out-turn forecloses it. Don't close out until all variation pricing is agreed.
- Not capturing forecast-to-out-turn variance for analysis. The data is a goldmine for the consultancy's estimating practice. Capture it; review it; use it on the next bid.
- Mixing contract out-turn with all-in project out-turn. The all-in cost includes consultancy fees, CDM coordination, surveys, planning, and the like. Contract out-turn is just the construction contract. Be clear about which you're reporting.
Related
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