Budget at Completion

Budget at completion, abbreviated as BAC, is a term commonly used in project management, particularly in the context of earned value management (EVM).  It refers to the total budget allocated for completing a project according to the project's scope, schedule, and resource requirements.  In simpler terms, budget at completion represents the total estimated cost of the project from start to finish if everything goes according to plan.

BAC is a crucial baseline against which project performance and cost control are measured throughout the project lifecycle.  It helps project managers and stakeholders gauge how well the project is progressing in terms of cost management.  Throughout the project, actual costs are compared to the budget at completion to assess whether the project is staying within budget, exceeding budget, or falling short of budget expectations.  This comparison helps in identifying potential cost overruns or savings and allows project managers to take corrective actions as necessary to keep the project on track.

 

Budget at Completion Formula

\( BAC =  TACE + TCCR \)

Symbol

\( BAC \) = budget at completion

\( TACE \) = total activity cost estimates

\( TCCR \) = total contingency cost reserve