Cost Forecasting
Predict final project costs using actual spend data, planned budgets, and configurable forecasting models.
Accessing Forecasting
Navigate to Project > Cost Management > Forecasting
Key Metrics
The forecasting dashboard displays:
| Metric | Description |
|---|---|
| BAC (Budget at Completion) | Original total budget |
| AC (Actual Cost) | Total costs incurred to date |
| EV (Earned Value) | Value of work completed so far |
| ETC (Estimate to Complete) | Projected remaining cost |
| EAC (Estimate at Completion) | Projected total cost (AC + ETC) |
| VAC (Variance at Completion) | BAC minus EAC: positive = under budget |
Forecasting Methods
The module supports multiple forecasting approaches:
Linear Projection
Projects final cost based on current spend rate:
- EAC = AC + (BAC - EV)
- Best for projects where remaining work is on track
Performance-Based (CPI)
Uses cost performance index to adjust the forecast:
- CPI = EV / AC
- EAC = BAC / CPI
- Best when past performance is a reliable indicator of future performance
Manual Override
Project managers can override the forecast:
- Open the project forecast
- Click Override ETC
- Enter the revised estimate with a justification note
- The EAC recalculates automatically
tip
Use performance-based forecasting after at least 20% of the project is complete. Early-stage data can produce misleading CPI values.
Forecast Timeline
View projected cost over time:
- X-axis: project timeline (weeks or months)
- Y-axis: cumulative cost
- Planned line: expected spend curve from the budget
- Actual line: real spend to date
- Forecast line: projected spend through completion
The gap between the planned and forecast lines indicates whether the project will finish over or under budget.
Alerts and Thresholds
Configure automatic alerts:
- Go to Cost Management > Configuration > Alert Thresholds
- Set triggers:
| Alert | Trigger |
|---|---|
| Budget Warning | EAC exceeds BAC by a configurable % (default 10%) |
| CPI Alert | CPI drops below a threshold (default 0.9) |
| Burn Rate Alert | Weekly spend exceeds planned weekly budget |
- Notifications are sent to the project manager and optionally to stakeholders
Need Help?
Contact SDLC Corp at sdlccorp.com/contact-us