Budget
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: In Earned Value Management (EVM), a Budget is the approved resource estimate for a defined scope of work. At any level, the Budget at Completion (BAC) is the sum total of the time-phased Budgeted Cost for Work Scheduled (BCWS) for that work.
"Budget" means different things in different fields. In finance, it often means an annual spending plan. In EVM, it's the resource estimate approved for a defined scope of work. That is different from funding, which is the money actually made available to spend.
What this means for you
Mixing up budget and funding causes real problems. A project can be fully funded but have an unrealistic budget for its scope, or the reverse.
Also known as
N/A
Used in
Budgeted Cost for Work Scheduled; Budget at Completion; Schedule Variance; Schedule Performance Index
See also
FAQ
Is "budget" the same thing as "funding"?
No. Budget is the approved estimate used to measure performance. Funding is authorization to spend up to a set amount.
How does Budget relate to Budget at Completion?
The Budget at Completion (BAC) is the sum total of the time-phased Budget, or Budgeted Cost for Work Scheduled (BCWS), for a given scope of work, and it applies at every level. The two terms are sometimes used interchangeably, but "Budget" is a broader word and can mean different things to different people.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
