CVR (cost value reconciliation): definition and example
A regular comparison of what a job has cost with what it has earned, usually monthly.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Read this alongside NRM 2: Detailed measurement for building works.
Cost value reconciliation compares the value earned on a job with the costs recorded or forecast for it. Consistent cut-off dates matter: unpaid invoices, accrued costs and unagreed variations can distort the picture. A projected margin is neither the cash balance nor an established claim entitlement.
Separate agreed value from amounts still being assessed. Underpayment prevention can strengthen the records supporting applications without turning forecasts into guaranteed payment.
Worked example
The facts
A package shows £40,000 of earned value and £35,000 of recorded costs.
What happens
The subcontractor identifies £3,000 of supplier costs incurred but not yet invoiced.
It includes the accrual before assessing the job's apparent margin.
What this shows
The indicated margin falls from £5,000 to £2,000; cash received and disputed variation value still need separate tracking.