Budget at Completion (BAC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Budget at Completion (BAC) is the total authorized budget for accomplishing all of the defined work in a project or a sub-element of a project such as WBS Element, Control Account, Work Package, or Planning Package.
BAC is the sum of every performance budget established for the work — at the whole-project level, it equals the total of every lower-level budget added together. The BAC is the sum of the time-phased BCWS. It's a performance target, not a spending cap: the actual cost of finishing the work can end up higher or lower than the BAC.
Why it matters
BAC represents the approved total performance budget at all levels of detail in the project. It is the reference point for the Variance at Completion (VAC). Without a clear BAC, there's nothing to measure final cost performance against.
Also known as
N/A
Used in
Variance at Completion (VAC = BAC - EAC); TCPI-BAC (= (BAC - BCWP) / (BAC - ACWP))
See also
Budgeted Cost for Work Scheduled
Estimate at Completion
Variance at Completion
To Complete Performance Index - BAC
To Complete Performance Index - EAC
Management Reserve
Contract Budget Base
FAQ
Does going over BAC mean the project failed?
Not necessarily. BAC is a budget target, not a hard ceiling. A project can finish above or below it and still have performed efficiently or poorly, depending on the scope actually delivered.
How is BAC different from the Contract Budget Base?
The BAC represents the approved budget baseline values for the elements of the project, down to the Control Account, Work Package, and Planning Package level. The Contract Budget Base is the sum of BAC for those elements, plus whatever amount is currently held in Management Reserve (MR).
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
