Glossary · O
Overrun (Cost & Time)
Spending above the baseline budget (cost overrun) or completion after the contractual date (time overrun) on a project.
What is Overrun (Cost & Time)?
A cost overrun is actual spending that exceeds the baseline BOQ estimate, caused by material price rises, rework or poor estimation. A time overrun is construction that runs past the contractual handover date, caused by poor scheduling or labour shortages, and it often adds cost through liquidated damages.
Practical example
A developer estimates a highway project at ₹1,00,00,00,000 and 24 months. Delays in acquiring the NA land cause a 6-month time overrun, and in those 6 months the price of structural steel rises by 30%. The project finishes 6 months late at ₹1,30,00,00,000, a cost overrun of ₹30,00,00,000.
In SuperWise
In SuperWise the MIS report compares planned and actual cost, and planned and actual dates with SPI and variance, for each WBS task. Baselines hold the approved dates, so each task records its start and finish variance in days. A purchase order that raises spend beyond budget records that the user acknowledged the increase.
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