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Cost overrun

1 reply [Last post]
Mona Singh
User offline. Last seen 5 years 8 weeks ago. Offline
Joined: 14 May 2013
Posts: 4
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Dear All


I am working on a project which started 2012 & finish date is 2019, Mining project. I prepared the project & got all cost variance as per planned & actual with delay analysis. Now we need to find the [strong]cost overrun [/strong]compare with the project report (DPR) which given by one of our consultant 2 yrs back. How to do ??

should I prepare activity wise consultant report in P6 then running Claim digger ??

* using P6 8.3 EPPM

* All cost is incurred on expenses wise because most of the work done by vendors.

Pl guide me ...., Thanking you in Advance.



Madan Mohan


Mike Testro
User offline. Last seen 2 weeks 3 days ago. Offline
Joined: 14 Dec 2005
Posts: 4417

Hi Madan

The point of recovery of costs following an EoT is to put the contractor back in the same position costwise that he would have been but for the delay.

It is not a permit to recover all the cost over runs that have been incurred which may have many causes other than the delay.

Costs in respect of an EoT are the actual EXTRA costs paid out during the period of the delay event and then only for the duration of the extended end date.

I hope this helps

Best regards

Mike Testro