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AI agent for construction contractors

Construction Cost Report Variance Agent

A monthly cost report with a reliable forecast final cost and explained variances

Construction Cost Report Variance Agent: what goes in, what the agent does and what you get

What it does

A project cost report must show the budget, commitments, actual costs, pending changes and forecast final cost, and errors hide in unmatched invoices. At month-end cutoff, this agent pulls the budget, subcontracts, purchase orders, invoices and change log and builds the report by cost code. It checks that every invoice ties to a commitment and every pending change appears in the forecast. Unmatched items go back to the team to fix before it pulls again. It then compares forecast with budget and flags lines over 5% of their budget. Pending changes are forecast at the most likely value, and contingency use is shown separately. It drafts variance notes from the change log. The quantity surveyor or project manager writes the commentary and approves. Edge case: a change still under negotiation shows its range next to the most likely value.

How it works

Follow the arrows from top to bottom. The orange dashed arrow is the loop: when a check fails, the agent goes back and tries again.

Start and resultWhat it doesA check on its own workWaits for your OKGoes back and retries
Yes, continueApprovedNo 1 STARTS WHEN Month-end cutoff 2 USES A TOOL Pull budget, commitments, invoices and changes 3 DOES Build the cost report by cost code 4 CHECKS THE RESULT Does every invoice tie to a commitment and everypending change appear in the forecast? If not: list unmatched items for the team to fix andpull again. Back to step 2. 5 DOES Compare forecast with budget and flag variances 6 USES A TOOL Draft variance notes from the change log 7 YOU APPROVE QS or PM approves the report 8 RESULT Monthly cost report issued
Read the steps as a list
  1. Month-end cutoff
  2. Pull budget, commitments, invoices and changes
  3. Build the cost report by cost code
  4. Does every invoice tie to a commitment and every pending change appear in the forecast?If not: list unmatched items for the team to fix and pull again. Back to step 2.
  5. Compare forecast with budget and flag variances
  6. Draft variance notes from the change log
  7. QS or PM approves the reportThe agent waits here for your OK.
  8. Monthly cost report issued

How it decides

Forecast equals commitments plus pending changes plus cost to complete. Lines over 5% of budget are flagged.

  • Variance over 5% of line budget is flagged
  • Pending changes forecast at most likely value
  • Contingency use shown separately

Make it yours

Every agent is a starting point. You choose these settings for your own situation.

  • Variance threshold (default 5%)
  • Cost code structure
  • Report format for owner
  • Cutoff day

What keeps you in control

It always asks you first

  • QS or PM approves before issue
  • Owner or developer approves contingency use

Hard limits

  • Never approves payments
  • Never changes the budget

It stops when

  • Done: report issued
  • Stop: accounting data not closed

Set it up

We guide you through the set-up, step by step

Members get the full set-up guide for this agent. No technical skills needed: you copy, paste and upload.

10 minto set it up in your AI
5 AIsChatGPT, Claude, Copilot, Gemini, Grok
  • One set of instructions to paste into your AI, with the clicks for ChatGPT, Claude, Microsoft 365 Copilot, Gemini and Grok
  • The agent then walks you through connecting your own data, one source at a time
  • A downloadable copy with the flow chart, the rules and the full guide
Get access to this agent

An example run

What happensOn a $28 million office fit-out, 3 invoices did not tie to any commitment at the September cutoff, so the check failed. One was a missing purchase order for scaffolding worth $42,000, which the team added. After the next pull, the drywall line showed a 9% overrun from two pending acoustic ceiling changes. The project manager approved the report with that commentary.

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