The dashboard in seven lines
Seven lines are enough, provided they are kept at the same date and in the same unit (HTVA, excluding VAT). Each answers a different question; the last is the only one used to decide.
| Line | What it contains | Where the value comes from |
|---|---|---|
| Initial budget | the approved works envelope, excluding VAT, with its value month | architect's agreement, estimate |
| Committed amount | the price of the signed contracts | contracts and annexes |
| Approved extras | changes accepted in writing, with their price | written orders, agreements, addenda |
| Extras under discussion | requests received and not yet accepted, at their probable amount | contractor's requests, own estimate |
| Price revision | the effect of the revision clause, invoiced and still to come | contract formula, published indices |
| Quantity variances | the difference between contract quantities and projected quantities | progress statements, métré (meetstaat, bill of quantities) |
| Forecast final cost | committed amount plus the four variance lines | calculation by the client or the client's adviser |
The contingency is read against the forecast. What remains of the contingency, compared with what the variances consume, tells you whether the envelope holds. A contingency half used up before the finishes have started is a warning sign, even if the committed amount has not moved.
Committed is not final
The committed amount is reassuring, and that is its flaw. It reflects only the signed contracts; extras, approved or under discussion, price revision and drifting quantities escape it.
Extras under discussion are entered at their probable amount, not at zero on the grounds that they are disputed. If they are finally rejected, the line is released.
Price revision and quantities are projected through to the end. What has been invoiced says nothing about the revision on the remaining works, and a quantity that already exceeds the contract quantity halfway through the item signals a final overrun.
The rhythm: every progress statement
The dashboard is updated at the rhythm of progress statements, because that is where the information arrives. Each statement shows what has been carried out, item by item. Reading variations and interim valuations is covered in the guide on measurement.
In a public contract, the timetable is regulated. Under article 95 of the RGE (general implementing rules, Royal Decree of 14 January 2013), the contractor submits a déclaration de créance (payment claim) together with a detailed statement of the works, which the pouvoir adjudicateur (contracting authority) checks and pays within 30 days (60 for certain contracting authorities in the healthcare sector). That period is also the window in which the forecast must be updated, before payment confirms the quantities.
In a private contract, the rhythm is the contract's. Requiring detailed progress statements by item, rather than an overall percentage, is the condition for spotting an item that is drifting.
The four sources of variance
A variance in final cost almost always has one of four causes. Each has its own regime and its own line in the dashboard:
- changes in a private contract, where article 1793 of the old Civil Code makes any price increase conditional on written authorisation and an agreed price;
- changes in a public contract, governed by the general implementing rules;
- quantity variances;
- price revision, whose effect depends on the budget's value date.
What weakens the tracking
Three practices ruin a dashboard. Each one erases a piece of information the forecast needs:
- accepting an extra orally and without a price;
- mixing amounts excluding VAT with amounts including VAT;
- failing to date the initial budget, which makes it impossible to isolate the share of the variance due to price revision.
The decision remains with the client. The dashboard shows early enough where to make trade-offs: reduce an item still to come, draw on the contingency, or accept a higher forecast knowingly.
The articles in this branch
- The article on extras in a private lump-sum contract deals with article 1793, written authorisation and a price agreed before execution, and the cost of termination.
- The article on changes to a public contract in progress deals with written orders, modification ceilings and the review clause provided for by the general implementing rules.
- The article on what quantity variances do to the final cost deals with item-by-item projection and the revision of unit prices beyond three times or below half the provisional quantities.
- The article on price revision and the budget's base date deals with updating the budget to the tender date and the compulsory revision in public works contracts.
This article reflects the position of the rules at the date of checking and serves professional orientation. It does not constitute legal advice and does not replace assessment of the individual case.