Estimated cost
Estimated cost is the amount allowed for completing a job before the work begins. A useful estimate separates labour, materials and subcontractors because each category behaves differently during construction.
Actual cost
Actual cost is built from recorded events: hours worked, materials purchased and subcontractor work received. It changes as the project progresses and becomes reliable only when costs are assigned consistently to the correct job.
Budget left = Estimated cost − Actual cost
How to read the result
- A positive budget-left value means recorded actual cost is still below the estimate.
- A negative value means actual cost has exceeded the estimated allowance.
- A positive value does not automatically mean final profit—the remaining work may still create more cost.
Example
A plastering job has estimated labour of €4,000, estimated materials of €2,500 and estimated subcontractors of €0. Recorded labour is €3,200 and materials are €2,100.
- Labour budget left: €4,000 − €3,200 = €800
- Material budget left: €2,500 − €2,100 = €400
- Total estimated cost: €6,500
- Total actual cost so far: €5,300
The job is €1,200 below its estimated cost at that moment, but the manager still needs to consider unfinished work.
Why category-level tracking matters
A job may save money on materials but lose more on labour. Looking only at the combined total hides that distinction. Separate positions show whether the issue came from productivity, purchasing, quantity changes or a decision to use a subcontractor.
Estimate versus actual is not profit
The difference measures budget performance. Profit requires the value billed for the work. Read next: how to calculate real construction-job profit.