Tunnel Boring & Heavy Civil Equipment worked example

Project Margin with contract revenue recognized of 310 value: a worked example in tunnel boring & heavy civil equipment

This scenario runs the project margin calculation on the strong side: contract revenue recognized of 310 value, with every other input held at its documented default. Use it when project margin in tunnel boring and heavy civil equipment needs a clean margin number for a tunnel boring and heavy civil equipment go / no-go review.

The inputs for this scenario

  • Contract Revenue Recognized: 310 value (raised for this scenario; the documented default is 125)
  • Project Cost Incurred: 100 value (unchanged)
  • Revenue Base for Margin: 100 value (unchanged)

Working through the calculation

  • Applying the documented formula (Project margin amount gap = available project margin amount - required project margin amount) to the inputs above produces each figure below.
  • At this operating point the engine returns 210 % for project margin, the number this scenario is built around.
  • At this operating point the engine returns 210 value for project margin amount gap.
  • At this operating point the engine returns 310 value for available project margin amount.
  • At this operating point the engine returns 100 value for required project margin amount.

How this compares with the baseline

  • Against the tool's baseline example, where contract revenue recognized sits at 125 value and the headline result is 25 %, this scenario comes in 740% above the baseline at 210 %.
  • Use it at each cost-report cycle to compare current margin against bid margin and to forecast at completion. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Project margin: 210 % (headline result)
  • Project margin amount gap: 210 value
  • Available project margin amount: 310 value
  • Required project margin amount: 100 value

Run it with your numbers

  • Every input above is editable in the live Project Margin calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.