Contract Cost vs Actual Cost

Contract Cost vs Actual Cost

Project-driven companies need to manage several budgets for the same project. Particularly useful to control contract cost (income) and actual cost (expenses) of project.

The actual cost comprises of equipment, materials, resources and other direct and indirect expenses.

Cost Centers
Spider Project unique feature – Cost Centers enable to control several budgets of the same project. Project cost components in Spider Project could be grouped in cost centers to control both: contract and actual costs.

This approach has a number of advantages:

  • To be competitive in tenders, as it is extremely useful to calculate planned profit, taking risks and uncertainties into account;
  • During project execution, project managers can control how their decisions impact profit;
  • Project sponsors can understand the “cost of delay”.

See how Contract Cost and Cost Centers work in Spider Project:

Julia Lyaschenko

PMO | Program Planning & Delivery Specialist | PRINCE2© Practitioner | SAFe© Agilist (SA)