What does the term 'Cost of Record' refer to in construction?

The term 'Cost of Record' in construction specifically refers to the documentation of actual costs incurred during construction. This encompasses all expenses that have been captured and recorded as the project progresses, providing a concrete account of what has been spent. This record is vital for project management and financial tracking, as it enables stakeholders to assess the financial health of the project, identify variances from the budget, and make informed decisions based on actual expenditures.

Having accurate records of costs is essential for ensuring accountability and understanding the financial trajectory of a project. These records can include invoices, receipts, and any other relevant financial documents that reflect the true cost of materials, labor, and other expenses tied to the construction process. The emphasis on documentation aligns with best practices in project management, ensuring transparency and facilitating adjustments as needed based on real-world spending.