Control project cost with commitments as well as payments
Compare the budget, costs already incurred and the work still to come.
Set a baseline that matches the work
Break the project into activities that someone can measure. For each activity, record the agreed quantity, labour, materials, subcontract work and other costs. Keep tax and contingency assumptions visible. A single total cannot explain why a project is moving off budget.
Separate incurred, committed and paid amounts
A supplier order can commit money before an invoice arrives. An invoice can create a liability before the bank payment. Record these stages separately and avoid counting the same amount twice. Review which open orders are still required when the scope changes.
Estimate the cost to finish
Ask the person doing the work what remains, not just how much has been spent. A simple forecast is cost incurred plus estimated remaining cost. Compare that forecast with the approved budget. A project that is half spent is not necessarily half complete.
Approve changes before absorbing them
Document the reason, scope, cost and schedule impact of a variation. Name the person who can approve it. Retain the original estimate and the approved revision so a later review can distinguish a changed scope from poor execution.
Use a weekly exception review
Review activities with unexplained variances, overdue approvals or unreconciled material issues. In Dastyar, project progress, daily reports, labour and inventory provide supporting records. Financial posting requires the appropriate permission. The software supports the review; it does not automatically validate a contract or accounting treatment.
Further reading: U.S. Government Accountability Office: Cost Estimating and Assessment Guide.