# Cost Overrun in Construction

> A cost overrun is spending above the baseline estimate; a time overrun is a late finish. See a highway example and the SuperWise plan-versus-actual reports.

Canonical: https://superwise.site/glossary/cost-overrun/
Last updated: 2026-11-01

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](https://superwise.site/glossary/bill-of-quantities/) estimate, caused by material price rises, rework or poor [estimation](https://superwise.site/glossary/estimation/). A time overrun is construction that runs past the contractual [handover](https://superwise.site/glossary/handover-possession/) date, caused by poor scheduling or labour shortages, and it often adds cost through [liquidated damages](https://superwise.site/glossary/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](https://superwise.site/glossary/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](https://superwise.site/glossary/work-breakdown-structure/) 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.

[Budget tracking](https://superwise.site/features/estimation-vs-earned-value/)

## Related terms

- [Estimation](https://superwise.site/glossary/estimation/)
- [Bill of Quantities (BOQ)](https://superwise.site/glossary/bill-of-quantities/)
- [Liquidated Damages (LD)](https://superwise.site/glossary/liquidated-damages/)
- [Earned Value Management (EVM)](https://superwise.site/glossary/earned-value-management/)

## Related
- [Estimation](https://superwise.site/glossary/estimation/)
- [Bill of Quantities (BOQ)](https://superwise.site/glossary/bill-of-quantities/)
- [Liquidated Damages (LD)](https://superwise.site/glossary/liquidated-damages/)
- [Earned Value Management (EVM)](https://superwise.site/glossary/earned-value-management/)
- [Budget tracking](https://superwise.site/features/estimation-vs-earned-value/)