What is Actual Cost?

Actual cost in the context of construction refers to the total amount of money spent on a project during its completion. This includes all expenses incurred, such as materials, labor, equipment, and overhead costs. Actual cost is a crucial factor in determining the overall success and profitability of a construction project. By accurately tracking and analyzing actual costs, project managers can identify any discrepancies between the estimated budget and the final expenses, allowing them to make informed decisions to keep the project on track.Furthermore, understanding actual costs can help construction companies improve their cost estimation processes for future projects. By comparing actual costs to initial estimates, companies can identify areas where they may have underestimated expenses and make adjustments to improve accuracy in future budgeting. This knowledge can also help companies negotiate better prices