What cost drift means on a live project
Cost drift appears when actual unit costs begin to separate from planned unit costs. A few unproductive shifts may seem manageable, but repeated variance compounds into a measurable budget gap.
Common drivers
- Labour productivity below expected rate
- Rising equipment idle or standby time
- Material consumption above estimate
- Frequent method or sequencing changes
- Delayed reporting and late corrective action
Why teams miss it
Monthly reporting compresses many operational days into one financial snapshot. By the time variance appears, root causes are harder to isolate and recovery costs increase.
Early warning threshold
Two to three consecutive days below planned production can be enough to trigger a
meaningful cost drift trend on critical activities.
How to control drift early
Track daily labour, equipment, materials, and production by activity. Compare expected versus actual unit performance each day, not each month.