Outturn cost is the actual final cost of a project or activity once it has been completed, as opposed to the cost that was estimated, budgeted or forecast earlier.
In practice, quantity surveyors report a forecast outturn cost throughout a project, often called the anticipated final cost (AFC) or estimated final cost. It combines the cost incurred to date with the expected cost to complete, including approved and pending changes and an allowance for the risks that remain. Comparing the forecast outturn with the budget gives early warning of an overspend. On NEC target cost contracts (Options C and D), the final Price for Work Done to Date is compared with the final total of the Prices to work out the Contractor’s share of any saving or overrun. In cost planning, an estimate stated “at outturn” usually includes an allowance for inflation up to completion.
Related terms: anticipated final cost, cost value reconciliation, target cost, budget.
