Tunnel Boring & Heavy Civil Equipment worked example

Project Margin with contract revenue recognized of 63 value: a worked example in tunnel boring & heavy civil equipment

Suppose contract revenue recognized falls to 63 value. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate project margin for tunnel boring and heavy civil equipment using production-ready inputs so teams can measure the gap between available and required amounts.

The inputs for this scenario

  • Contract Revenue Recognized: 63 value (the input this scenario stresses; the baseline uses 125)
  • Project Cost Incurred: 100 value (held at the documented default)
  • Revenue Base for Margin: 100 value (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Project margin amount gap = available project margin amount - required project margin amount.
  • Project margin works out to -37 % at these inputs, and this is the headline figure for the scenario.
  • Project margin amount gap works out to -37 value at these inputs.
  • Available project margin amount works out to 63 value at these inputs.
  • Required project margin amount works out to 100 value at these inputs.

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 248% below the baseline at -37 %.
  • It computes project margin as the gap between recognized revenue and incurred cost, expressed as a percentage of the revenue base. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Project margin: -37 % (headline result)
  • Project margin amount gap: -37 value
  • Available project margin amount: 63 value
  • Required project margin amount: 100 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Project Margin calculator, set contract revenue recognized to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.