How often should contractors review their project costs?

Contractors should review their project costs monthly or throughout the project to ensure they remain within budget and can make adjustments as necessary. This ongoing review process allows for real-time tracking of expenses, which can help identify any variances from the original project budget early on.

By regularly assessing costs, contractors can pinpoint areas where spending may be exceeding expectations and take corrective actions before those issues escalate. Furthermore, continuous cost tracking promotes better financial planning and resource allocation, ultimately contributing to the overall success of the project. Regularly engaging with project costs also reinforces accountability and encourages proactive management practices, which are essential for maintaining profitability and ensuring that projects are completed successfully.

Reviewing costs only at the end of a project, when problems arise, or infrequently on an annual basis during audits does not provide the same level of insight or control, as these approaches may lead to overspending or issues that could have been resolved earlier.