Differences Between BAC and EAC

BAC (Budget at Completion)

The BAC represents the total budgeted cost of the project as initially authorized at the beginning of the project.

Key Facts

  1. Definition:
    • BAC: The BAC represents the total budgeted cost of the project as initially authorized at the beginning of the project.
    • EAC: The EAC is an estimate of the total cost of the project at completion, taking into account the actual costs incurred and the projected costs to complete the remaining work.
  2. Purpose:
    • BAC: The BAC is used to establish the baseline budget for the project and serves as a reference point for measuring cost performance throughout the project.
    • EAC: The EAC is used to forecast the final cost of the project based on the actual performance and any anticipated changes in the remaining work.
  3. Calculation:
    • BAC: The BAC is determined at the beginning of the project and remains constant unless there are approved changes to the project scope or budget.
    • EAC: The EAC is calculated during the project execution phase and can be revised as new information becomes available.
  4. Timeframe:
    • BAC: The BAC represents the total budget for the entire project duration.
    • EAC: The EAC represents the estimated total cost at the completion of the project.
  5. Factors considered:
    • BAC: The BAC is based on the original budgeted costs and does not take into account any changes or deviations that may occur during the project.
    • EAC: The EAC takes into account the actual costs incurred, as well as any changes or deviations from the original plan, to provide a more accurate estimate of the final cost.

EAC (Estimate at Completion)

The EAC is an estimate of the total cost of the project at completion, taking into account the actual costs incurred and the projected costs to complete the remaining work.

Purpose

BAC

The BAC is used to establish the baseline budget for the project and serves as a reference point for measuring cost performance throughout the project.

EAC

The EAC is used to forecast the final cost of the project based on the actual performance and any anticipated changes in the remaining work.

Calculation

BAC

The BAC is determined at the beginning of the project and remains constant unless there are approved changes to the project scope or budget.

EAC

The EAC is calculated during the project execution phase and can be revised as new information becomes available.

Timeframe

BAC

The BAC represents the total budget for the entire project duration.

EAC

The EAC represents the estimated total cost at the completion of the project.

Factors Considered

BAC

The BAC is based on the original budgeted costs and does not take into account any changes or deviations that may occur during the project.

EAC

The EAC takes into account the actual costs incurred, as well as any changes or deviations from the original plan, to provide a more accurate estimate of the final cost.

Sources

  • Estimate at Completion (EAC) and Its Use In Project Tracking
  • How to Calculate BAC and EAC for Complex Projects
  • What is Estimate at Completion (EAC) in Project Management?

    FAQs

    What is BAC?

    BAC stands for Budget at Completion and represents the total budgeted cost of the project as initially authorized at the beginning of the project. It serves as a baseline for measuring cost performance throughout the project.

    What is EAC?

    EAC stands for Estimate at Completion and is an estimate of the total cost of the project at completion. It takes into account the actual costs incurred and the projected costs to complete the remaining work.

    What is the purpose of BAC?

    The purpose of BAC is to establish a baseline budget for the project and to serve as a reference point for measuring cost performance throughout the project.

    What is the purpose of EAC?

    The purpose of EAC is to forecast the final cost of the project based on the actual performance and any anticipated changes in the remaining work.

    How is BAC calculated?

    BAC is calculated at the beginning of the project and remains constant unless there are approved changes to the project scope or budget. It is based on the original budgeted costs.

    How is EAC calculated?

    EAC is calculated during the project execution phase and can be revised as new information becomes available. It takes into account the actual costs incurred, as well as any changes or deviations from the original plan.

    What is the difference between BAC and EAC?

    BAC is the total budgeted cost of the project as initially authorized, while EAC is an estimate of the total cost of the project at completion, taking into account actual costs and projected costs to complete.

    Why is it important to track both BAC and EAC?

    Tracking both BAC and EAC is important because it allows project managers to compare the actual costs of the project to the original budget and to forecast the final cost of the project. This information can be used to make informed decisions about the project, such as whether to continue with the project or to make changes to the scope or budget.

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