Cost Control Overview
Cost control begins after an estimate is approved. The approved estimate becomes the active baseline — the financial reference that governs all downstream cost tracking.
The cost control flow is:
approve → track → learn
Core Concepts
Section titled “Core Concepts”Active Baseline
Section titled “Active Baseline”The active baseline is the approved estimate that cost tracking reads. In API terms, ActiveProjectApprovalId identifies the approval governing cost tracking — distinct from the most recently processed approval. If a new approval replaces it, new cost groups are generated while previous baseline structures remain available for historical comparison.
Commitments
Section titled “Commitments”Commitments (purchase orders, subcontract awards, contracts) sit between the baseline and actual costs. They capture confirmed financial obligations before final invoices arrive, enabling three-layer variance analysis: procurement variance (commitment vs. baseline), execution variance (actual vs. commitment), and total variance (actual vs. baseline).
Actual Costs
Section titled “Actual Costs”Execution-side cost records — invoices, incurred amounts — tied back to the approved baseline and, when applicable, to specific commitment lines. Each actual carries source context so it can be understood in relation to the budget structure and project history.
Variance
Section titled “Variance”Variance compares the approved baseline against actual execution costs. It is reported dually as provisional (all entries) and substantiated (entries with supporting evidence). The goal is to explain what changed: price movement, quantity interpretation, scope change, execution behavior, or decision assumptions.
The Learning Loop
Section titled “The Learning Loop”Variance findings feed back into Darwin’s knowledge base. Attributed deltas — with cause codes and source entity links — can trigger work requests that improve modules, pricing practices, and estimating assumptions for future projects.