On-Budget Project Delivery Rate
Percentage of client projects delivered within the agreed budget
What is On-Budget Project Delivery Rate?
On-budget project delivery rate is the percentage of completed projects that finished at or under budget. It shows how well a firm controls project cost.
For professional services, budget overruns cut profit and damage client relationships.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Project Delivery
- Industry
- Professional Services
- Type
- Lagging
- Impact
- Quality
- Unit
- %
- Measurement frequency
- Monthly / Quarterly
- Formula
- (Projects completed on or under budget / Total projects completed) × 100
How to calculate it
Divide projects completed on or under budget by total projects completed, and multiply by 100.
For example, if 42 of 60 completed projects met their budget, the rate is 70%.
Agree how budget is defined, such as the approved amount including agreed changes, and look at the size of overruns as well as their number.
Where it is used
Controlling delivery cost
Track budget discipline.
Improving estimating
Learn from overruns.
Managing client expectations
Build trust.
How to improve it
Tips and common mistakes
- Coming in far under budget may mean estimates are too high.
- Include agreed change requests in the budget.
- Track profit as well.
More Operations & Supply Chain kpi library
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