Skip to content

Tracking the final cost during the works

📐 Topic

By , construction economist

Information verified on 7 min read

What you will learn The seven lines of the client's dashboard, the difference between committed amount and final cost, the rhythm of progress valuations, public payment deadlines and the four sources of deviation covered in this branch.

Once the contract is signed, the budget does not disappear: it changes nature. The committente (the client) is no longer following an estimate but a forecast of the final cost, and that forecast is revised at every progress valuation, the stato di avanzamento lavori (SAL), not at the final account. What goes unseen on site is discovered when no lever is left.

The dashboard in seven lines

Seven lines are enough, provided they are kept at the same date and in the same unit, 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 spending limit (limite di spesa) for the works, excluding VAT, with the reference month for prices designer's appointment, approved estimate
Committed amount the price of the signed contracts building contracts (appalto) and their annexes
Approved variations changes authorised in writing, with their price variation orders, supplementary agreements
Variations 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 or rule, already accrued and still expected contract, art. 1664 of the Civil Code, art. 60 of the public contracts code
Claims and disputes amounts claimed by the contractor and not recognised accounting register, correspondence
Forecast final cost committed amount plus the four deviation lines calculation by the client or the client's adviser

The contingency reserve is read alongside the forecast. How much of the reserve remains, compared with how much the deviations are consuming, tells you whether the budget holds. A reserve half used up before the finishes have even started is a warning sign, even if the committed amount has not moved.

Committed does not mean final

The committed amount is reassuring, and that is exactly its flaw. It reflects only the signed contracts: variations, price revision and claims escape it. Variations under discussion and claims go in at their probable amount, not at zero because they are disputed; if they are rejected, the line is released. Revision and quantities are projected to the end: a measured item (a misura) that has already reached the bill of quantities figure halfway through execution signals a final overrun.

The rhythm: every progress valuation

The dashboard is updated at the rhythm of the SAL, because that is where the information arrives. The progress valuation summarises all the work carried out from the start, the consideration accrued and the payments on account already made (Annex II.14 to D.Lgs. 36/2023, art. 12). Together with the works diary, the measurement books and the accounting register, which "summarises and centralises the entire accounting of the work" (unofficial translation, as are all quotations in this article), it forms the documentary basis on which the client works. How to read these documents is explained in the article on construction works accounting.

In public works the deadlines are set by law. Payments on account are made "within thirty days from the adoption of each progress valuation"; a different deadline, of 60 days at most, is allowed only if agreed and objectively justified (D.Lgs. 36/2023, art. 125(2)). The RUP (the official responsible for the project) issues the payment certificate at the same time as the SAL, "within a period not exceeding seven days" (para. 5). This window is also the moment to update the forecast, before payment consolidates the quantities.

The advance payment weighs on cash flow at the start. It equals 20 per cent of the contract value, up to 30 per cent if the tender documents provide for it, and is paid within 15 days of the actual start of works (art. 125(1)): a cash outflow to plan, not an additional cost.

In private work, the rhythm is the contract's. Requiring SAL detailed item by item, rather than an overall percentage, is the condition for noticing in time an item that is drifting.

The four sources of deviation

A deviation in the final cost almost always has one of four causes: variations in a private contract (arts. 1659, 1660 and 1661 of the Civil Code); varianti in corso d'opera (variations during the works) in the public sector; material cost increases and price revision; claims and termination, which do not appear in the SAL. Each is covered in an article in this branch, listed below.

What weakens control

Three habits ruin any dashboard: accepting a variation verbally and without a price; mixing amounts with and without VAT; not dating the initial budget, so that the deviation due to prices can no longer be told apart. The decision remains the client's. The dashboard shows early enough where to act: reduce an item still to be carried out, draw on the reserve, or knowingly accept a higher forecast.

The articles in this branch

This article on cost control during the works sets out the state of the rules as at 21 October 2026 and is intended for professional guidance. It does not replace legal advice or an examination of the specific case.

Frequently asked questions

At every progress valuation, when executed quantities, variation requests and claims arrive. An update only at the final account leaves no room for choice.

Yes, at its probable amount, on a line separate from approved variations. Removing it because it is disputed means underestimating the final cost.

The committed amount is the sum of the signed contracts. The final cost adds variations, expected revision and claims, each at its probable amount.

Identify the line carrying the deviation and decide while items remain to be carried out. The contingency reserve absorbs an identified deviation; it does not hide it.

Explore the articles in this guide

← The client's construction budget in Italy: setting it, checking it, holding it