Budget at Completion (BAC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Budget at Completion (BAC) is the total budget of an element of the project, e.g., a Work Breakdown Structure (WBS) Element, Control Account, or Work Package.
BAC is the sum of the time-phased Budgeted Cost for Work Scheduled (BCWS) for that element. It's a performance target, not a spending limit. The actual cost can end up higher or lower.
What this means for you
BAC is the reference point for judging cost performance. Comparing it to the Estimate at Completion (EAC) gives the Variance at Completion (VAC), a forecast of whether the work will finish over or under budget. Making this comparison early and often gives the earliest possible warning of a potential overrun.
Also known as
N/A
Used in
Variance at Completion; To Complete Performance Index - BAC
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. Going over BAC means the work cost more than budgeted. That's a cost overrun, but it doesn't by itself mean the project failed.
How is BAC different from the Estimate at Completion (EAC)?
BAC is what the work was budgeted to cost. EAC is the current forecast of what it will actually cost. BAC changes only through approved baseline changes, while EAC is updated as the work is performed.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
