Infrastructure Projects
Capital Project Cost Overruns
Approved budget versus forecast final cost showing overrun magnitude per project.
Why cost overruns demand early attention
A capital project's approved budget is the authority under which public money is committed, so a forecast final cost exceeding it signals potential unauthorised expenditure and weak project control. Overruns erode the capital programme, displace other projects and attract AGSA scrutiny under the MFMA's irregular and unauthorised expenditure provisions. AuditPro Core compares approved budget to forecast final cost per project so overruns are detected and approved before, not after, they are incurred.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Projects Over Budget
17
of 96
Total Overrun
R 412 m
▲ vs approved
Avg Overrun
18%
Within Budget
79
82%
Approved vs forecast cost (R m)
Overrun detail
| Project | Overrun | Primary cause |
|---|---|---|
| WTW Upgrade | R 81 m | Scope change orders |
| Ring Road | R 72 m | Geotech variations |
| Substation | R 53 m | Material escalation |
| Landfill Cell | R 23 m | Delay penalties |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Approved budget as authority
The approved project budget represents the council-sanctioned spending limit. Costs forecast beyond it require formal approval; incurring them without it risks unauthorised or irregular expenditure.
Forecast final cost
Forecast final cost projects the total expected outturn including committed variations and anticipated claims. Comparing it early to budget gives time to act, unlike comparing actual spend at completion.
Variation control
Most overruns accumulate through scope changes and contract variations that are individually small but collectively material. Disciplined variation tracking is the primary overrun defence.
Overrun magnitude
Expressing overrun as both rand value and percentage prioritises attention across the portfolio. A small percentage on a large project can dwarf a large percentage on a small one.
How AuditPro Core Bridges the Gap
- Budget-to-forecast comparison: AuditPro Core tracks approved budget against forecast final cost for every project.
- Variation register: contract variations are logged and accumulated so creeping overruns are visible early.
- Threshold alerts: projects forecast to exceed budget are flagged for approval before costs are incurred.
- Audit traceability: overrun approvals link to council or delegated authorisation for the audit file.
Key Takeaways
- Treat the approved budget as a hard spending authority.
- Use forecast final cost, not actual spend, for early warning.
- Control variations, since small changes accumulate into overruns.
- Rank overruns by both value and percentage to prioritise action.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.