Budget
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: In EVMS, a Budget is the approved resource estimate for performing a defined scope of work within the established schedule baseline. Budgets at various levels roll up into the project's overall Budget at Completion (BAC), and when time-phased the budget is referred to as BCWS.
Budget is used differently across disciplines, which is a common source of confusion. In finance it often refers to an annual operating or departmental spending plan; in EVMS it is the resource estimate authorized for a defined scope of work. It is also distinct from funding, which is the money actually made available to spend.
Why it matters
Confusing budget with funding can cause real problems — a project can be fully funded but still have an unrealistic budget for the scope of work, or vice versa. Keeping the two concepts distinct is essential for accurate cost planning and performance measurement.
Also known as
N/A
Used in
Budgeted Cost for Work Scheduled (BCWS), Budget at Completion (BAC), various derived metrics including Schedule Variance (SV) and Schedule Performance Index (SPI)
See also
FAQ
Is "budget" the same thing as "funding"?
No — budget is the approved resource estimate for a scope of work used as a benchmark for performance, while funding refers to an authorization to spend up to some designated amount.
How does Budget relate to Budget at Completion?
Budget is sometimes used synonymously with Budget at Completion. However, Budget is used more broadly and can mean different things to different people, depending upon the discipline they represent.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
