How to control a construction project budget
Last reviewed: 2026-10-25
In short
Set a budget for each expense category of a project, approve it, and track used = spent + committed against it. The status is OK under 80%, Warning from 80% to 100% and Over above 100%, so the warning arrives while there is still money left.
Setting the budget
Budgets are per expense category, main or sub, one line per category per project.
- The budget is approved, recording who approved it and when.
- Every later change is a revision with the previous amount, the new amount, the reason, who and when.
- A main category without its own line takes the sum of its sub-categories.
Spent and committed
Two figures matter besides the budget itself.
- Spent: everything paid out on the project, excluding voided lines.
- Committed: approved contractor work that has not been paid yet.
- Cheques written but not cashed are not counted as committed, to avoid counting them twice.
Reading the status
Used is spent plus committed, compared with the current budget.
- OK: under 80%.
- Warning: 80% to 100%.
- Over: above 100%.
- Unbudgeted: spending where no budget exists for the category.
Common questions
- What counts as committed?
- Approved contractor work that has not been paid. Uncashed cheques are not counted.
- Can a budget change after approval?
- Yes, as a recorded revision with the reason, who and when. The original amount stays on record.
- Where do I see profit?
- The profit report shows realized and expected profit, committed cost and budget for every project.
See it on your own projects
Ask for a demo and we will walk through this with your cheques, custodies and contractors.