Commercial
Burn rate
How fast a project is consuming its budget against its progress.
Definition
The rate at which an engagement spends money, read against how much of the work is actually complete. Tracked properly it is a comparison of two curves, not a single number: spend against delivery.
Why it matters
A project that is 70% spent and 40% delivered is in trouble, and the earlier you see it the more options you have. Ask for both numbers monthly. A provider reporting only spend, or only progress, is reporting half of what you need.
Related
Read next
Fixed price vs time and materials
Two ways to price work, suited to different certainty.
Read the definition ›Change request
The formal route for altering an agreed scope.
Read the definition ›Utilisation rate
The share of paid hours a provider actually bills to clients.
Read the definition ›Statement of work (SOW)
The document that defines what is being delivered.
Read the definition ›Next step
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