Job Cost Variance %

It shows whether a project is running over or under budget — positive means over estimate.

Formal definition

Job cost variance percentage equals actual cost minus estimated cost, divided by estimated cost, expressed as a percentage.

Why it matters

GCs watch variance on active jobs; sustained overrun above 5% often wipes out fee and contingency.

Where you see it

• Job cost reports in Procore/Buildertrend
• Project manager weekly meetings
• Construction accounting textbooks
• Surety bond underwriting
• Change-order logs

Worked example

1. Estimated cost: $500,000.
2. Actual cost to date: $520,000.
3. Variance = (($520,000 − $500,000) ÷ $500,000) × 100 = 4%.
4. Interpretation: Job is 4% over estimate — still within many control bands.

How Business metrics calculates it

(Actual job cost − Bid cost) ÷ Bid cost × 100.

The range we use for status labels

On Business metrics, the status band for this KPI is roughly 0 to 5. Lower values are generally healthier in this band. Your niche can sit outside it honestly — the label is a prompt to read the coaching, not a certificate.

Where people fool themselves

Variance of 4% on a $2M job is $80,000. “We’re close” is not close. Percent looks small; dollars pay subs.

Run it on your own numbers: the Construction calculator.