Capability
Cost Forecasting & EAC
Recast estimate at completion from remaining work, commitments, and unagreed change — with drivers, not only a new total.
C02 — The problem
The technical problem
Cost reports often move the EAC without moving remaining work. Commitments, actuals, and a ‘management assessment’ are added together until the total looks familiar.
Cost Forecasting & EAC is the assignment to rebuild remaining cost from remaining scope, letting, and known change — and to explain variance in delivery language. Cash-flow timing, cost-baseline setup, and commitment registers are separate cost assignments unless included in the agreed scope.
C03 — Engagement
When this capability is needed
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01
Period forecast
The EAC moved and finance or the owner needs drivers.
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02
Trend break
Remaining work changed and the cost file did not.
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03
Sanction / steering
A decision needs remaining cost, not only spend to date.
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04
Commercial exposure
Unagreed change is hiding inside ‘overrun’.
C04 — Scope / method
How the work is approached
Forecast of remaining cost and EAC against the live WBS/CBS, including treatment of unagreed change as exposure rather than silent actual. Not statutory accounts, not cash-flow treasury, not a claim quantum (Prolongation / Quantum Support).
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01
Reconcile actuals and commitments
What is spent and let, on the control structure.
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02
Map remaining work
Same remaining scope the programme is using.
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03
Price remaining work
Productivity, rates, and unlet packages as they stand.
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04
Treat unagreed change as exposure
Visible, not absorbed.
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05
Write the variance narrative
Why EAC moved, in delivery terms.
C05 — Outputs
Typical deliverables
| Output | What it contains |
|---|---|
| EAC / remaining-cost forecast | By control account. |
| Variance narrative | Drivers, not only totals. |
| Exposure list | Unagreed change and unlet packages. |
| Reconciliation to the programme | Remaining work the two files share. |
C06 — Decision value
What this work is used to decide
Whether to accept the forecast, demand a rebuild, or act on specific drivers (procurement, productivity, change). No outcome is guaranteed.
C08 — Project environments
Relevant project environments
C09 — Who we support
Who commonly needs this capability
C10 — Boundaries
Important distinctions
This is project cost control, not audit, tax, or a quantum expert report for proceedings.
C11 — Next step
Discuss your project
If this is the technical problem you are facing, talk to Value Construction about the work, the records required, and what you would receive. Outcomes are not guaranteed.