Over BudgetOver ScopeUnplanned third revision round added ~160 creative hours per cycle. Scope control required.
Contract value
$480,000
Monthly retainer
$40,000
Revenue recognized
$280,000
Labor cost
$323,400
Other delivery costs
$14,800
Gross profit
-$58,200
Gross margin
-20.8%
Budget variance
-$155,400
Hours allocated
2,400
Hours used
2,790
Remaining hours
-390
Scope variance
+16.3%
Projected final cost
$528,000
Projected final margin
-10%
Months over scope
3
Service areas
Integrated Campaigns, Creative, Digital
Delivery economics
Allocated vs. actual cost
Cost to deliver$168K planned · $323K actual
Hours consumed2,790 of 2,400
Projected final cost of $528,000 against $480,000 contracted value implies a -10% margin at close.
Trend
Gross margin, last six months
MarAprMayJunJulAug
-16%22%
- Active projects: Integrated Campaign
- Recommended action: Issue change order and renegotiate retainer scope.