Budget vs actual is the comparison of what a project was planned to cost with what has actually been spent, item by item, so overruns are spotted while there is still time to act.
The variance on each item is actual minus budget; a positive variance is an overrun. It is often shown as a percentage too: (actual − budget) ÷ budget × 100.
It only works if actual costs are recorded against the same items as the budget. If the BOQ has a line for flooring, the tile vendor’s bill must land under flooring, not in a general expenses sheet.
Looking at committed costs — work ordered but not yet billed — as well as payments gives an earlier warning than payments alone.
ARC PEM tracks every vendor bill, labour wage, contractor bill and site expense against the project’s BOQ budget and flags overruns as they happen. See all features.
ARC PEM tracks your BOQ, vendor bills, labour attendance, contractor ledgers and GST across every project — live for the whole firm, on any phone or computer.
Join 30+ architecture and construction firms already using ARC PEM to track budgets, manage vendors, and generate professional reports — without a single spreadsheet.