How project costs are calculated
The formula behind cost tracking and variance.
Why this matters
Knowing the formula makes variance explainable instead of surprising.
The formula
Project cost = machine hours × hourly rate + labour hours × labour rate + fuel consumed × fuel price + fixed costs
Where each number comes from
- Machine hours — telematics, or manual entry if not connected
- Labour hours — kiosk check-ins or time declarations
- Fuel — tank refuel logs
- Fixed costs — your workspace cost structure
Variance compares actual against planned. Anything past 10% is usually worth investigating.
