Synthetic worked example
Synthetic worked example: cost, certification and cash are different
Wholly invented project records showing how to reconcile cost incurred, submitted value, gross and net certification, and cash received.
SYNTHETIC WORKED EXAMPLE. All project records and amounts are wholly invented. This is not a customer case, measured product result, entitlement assessment or legal advice.
Define the snapshot
Practice Project B is wholly invented. The snapshot date is 30 September 2026. All figures are cumulative at that date and use illustrative currency units. For this exercise, cost means recorded cost incurred; submitted value means the amount included in an application; gross certified value means the amount treated as approved in our invented register before retention; cash means amounts actually received.
Assume a 5% retention for arithmetic teaching only. Ignore tax, advance recovery, other deductions, financing costs and disputed contractual terms. Real projects require the actual agreement, authorised records and appropriate professional review.
| Measure in this example | Illustrative currency units |
|---|---|
| Cost incurred | 125,000.00 |
| Cumulative submitted value | 140,000.00 |
| Cumulative gross certified value | 118,000.00 |
| Illustrative cumulative retention: 5% | 5,900.00 |
| Cumulative net certified value | 112,100.00 |
| Cash received to date | 90,000.00 |
Reconcile the submission to the invented certification register
The submitted value of 140,000.00 exceeds the invented gross certified value of 118,000.00 by 22,000.00. Assign 16,000.00 to items awaiting supporting evidence and 6,000.00 to a measurement adjustment in this invented register.
This classification is a teaching assumption, not a finding about entitlement. Pending evidence does not guarantee later approval, and a measurement adjustment cannot be resolved without the actual source records.
140,000.00 − 118,000.00 = 22,000.00 = 16,000.00 + 6,000.00
Separate gross certification, net certification and this period
Cumulative retention is 118,000.00 × 5% = 5,900.00. Cumulative net certified value is 112,100.00. Assume the previous cumulative gross certificate was 80,000.00, with retention of 4,000.00 and a previous net value of 76,000.00.
The current-period gross movement is 38,000.00. The retention movement is 1,900.00, so the net movement is 36,100.00. The current-period movement must not be added to the cumulative total again.
(118,000.00 − 80,000.00) − (5,900.00 − 4,000.00) = 36,100.00
Name the gap you are calculating
There is no single interchangeable “gap”. Write the two measures and the snapshot date beside every difference.
| Comparison | Arithmetic | What it shows here |
|---|---|---|
| Cost minus gross certification | 125,000.00 − 118,000.00 = 7,000.00 | Difference before retention. |
| Cost minus net certification | 125,000.00 − 112,100.00 = 12,900.00 | Difference after the illustrative retention. |
| Cost minus cash received | 125,000.00 − 90,000.00 = 35,000.00 | Cost-to-receipt comparison at this snapshot. |
| Net certification minus cash received | 112,100.00 − 90,000.00 = 22,100.00 | Amount not yet received in the invented register. |
Review sources before deciding what to do
For a real review, reconcile the cost ledger, submission, certificate register, retention record and receipts to a common date and currency. Track source versions, reversals and corrections. Assign unresolved items to a human reviewer instead of interpreting every difference as an error, claim or overdue debt.
The calculations do not establish profit, recoverability, entitlement, payment deadlines or delay responsibility. They also do not represent a CAIS service run. A document tool can support a review workflow; it cannot create evidence that is absent from the project record.
Methodology and limits
All inputs were invented for this original example. The method is direct reconciliation and subtraction, with the retention assumption stated explicitly. There are no client records, external benchmarks or verified customer outcomes behind the figures.
Explore the public Contract Administration and TUT overviews for their supported workflows, inputs, human-review requirements and limitations. Real project documents and workflows remain authenticated.