How do you calculate construction budget variance?

Construction budget variance is the difference between the budgeted cost and the actual cost. It can be calculated for the whole project or for each category. A useful variance analysis shows both dollars and percentage, separates original budget from revised budget, and explains which cost categories changed the project result most.

A small percentage overrun in a large category can matter more than a large percentage overrun in a small category.

The original budget, revised budget, and final actual can each tell a different story.

If sitework was budgeted at $90,000 and finished at $132,000, the variance is $42,000. The variance percent is 46.7%.

That tells you where the project moved. It does not prove why it moved without the source records or project-team context.

Illustrative numbers only. Not Bivvit benchmark data.

• Whether the comparison uses original budget or revised budget.
• Whether change orders are shown separately or blended into actual cost.
• Whether the final accounting report includes all invoices and closing adjustments.

Bivvit keeps original budget, revised budget, and final actual cost separate where the documents support it.

Bivvit ranks variances by their effect on profit and flags categories that repeat across multiple projects.

• Original budget vs actual cost
• Completed-project review
• Budget vs actual guide