PROJECT FEE: $800 PLANNED TOTAL HOURS: 20 INCLUDED REVISION HOURS: 3 ACTUAL REVISION HOURS: 4 TARGET HOURLY RATE: $45 REVISION OVERRUN SNAPSHOT Revision overrun: 1 hour Overrun equals 5.0% of planned project hours. Severity: LOW PLANNED VS ACTUAL HOURS Planned project hours: 20 hours Actual project hours: 21 hours EFFECTIVE RATE IMPACT Planned effective rate: $40.00/hour Actual effective rate: $38.10/hour RATE EROSION Effective rate decreased by 4.8%. UNPAID REVISION VALUE 1 hour × $45 = $45.00 RECOVERY FEE Target-rate project value: 21 × $45 = $945.00 Additional revenue needed to reach the target rate: $145.00 OVERRUN SEVERITY LOW COMMERCIAL DECISION ABSORB The revision overrun is small and represents only 5% of planned project time. NEXT-PROJECT LESSON Track revision hours separately and clarify when included revision time is exhausted.