Over BudgetOver ScopeExceeded contracted allocation three consecutive months. Renegotiation candidate.
Contract value
$180,000
Monthly retainer
$15,000
Revenue recognized
$105,000
Labor cost
$112,700
Other delivery costs
$4,300
Gross profit
-$12,000
Gross margin
-11.4%
Budget variance
-$49,700
Hours allocated
900
Hours used
1,160
Remaining hours
-260
Scope variance
+28.9%
Projected final cost
$198,000
Projected final margin
-10%
Months over scope
3
Service areas
Communications, Social
Delivery economics
Allocated vs. actual cost
Cost to deliver$63K planned · $113K actual
Hours consumed1,160 of 900
Projected final cost of $198,000 against $180,000 contracted value implies a -10% margin at close.
Trend
Gross margin, last six months
MarAprMayJunJulAug
-11%18%
- Active projects: Annual Communications Strategy
- Recommended action: Issue change order and renegotiate retainer scope.