Construction · Defined
Committed cost
Cost associated with an executed subcontract, purchase order, or other binding project commitment, including applicable approved adjustments.
Why it matters
Committed, invoiced, paid, and forecast costs are different measures. An unbought scope still needs an estimate, and an executed commitment can remain largely unpaid.
In practice
A project example
A $500,000 subcontract is committed even though only $100,000 has been billed.
Technical references
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.