Yield Variance

Yield Variance in the construction industry refers to the difference between the expected and actual usage of materials during a construction project. It measures the efficiency in the use of materials, highlighting discrepancies that can lead to cost overruns or savings. Yield variance can be caused by factors such as waste, theft, or errors in estimating. Identifying and analysing yield variance is crucial for cost control, as it helps project managers understand material usage patterns, improve estimating accuracy, and implement measures to minimize waste and optimize resource utilisation.