Variance Analysis

Variance Analysis in the construction industry is the process of evaluating the differences between planned and actual project performance, particularly in terms of costs and schedules. This analysis helps identify the causes of deviations from the budget and the project timeline, enabling project managers to implement corrective actions. Variance analysis is crucial for maintaining control over a project, ensuring that it remains on track and within budget. By regularly analyzing variances, construction managers can improve financial management, enhance operational efficiency, and increase the likelihood of project success.