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Estimate at Completion - to - Event-driven Review

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Estimate at Completion

Actual cost of work completed to date plus the predicted costs and schedule for finishing the remaining work. [D00614]

A value expressed in either dollars and/or hours, to represent the projected final costs of work when completed. The EAC is calculated as ETC + ACWP. [D00615]

The expected total cost of an activity, a group of activities, or of the project when the defined scope of work is completed. Most techniques for forecasting EAC include some adjustment of the original cost estimate based on project performance to date. Also shown as "estimated at completion." Often shown as EAC = Actuals-to-date + ETC. See also earned value and estimate to complete. [D00616]

Estimate Based on Working Drawings

See Estimate Class A. [D02716]

Estimate Class A

An estimate based on complete contract documents and used as a control check on authorized expenditures prior to tendering. [D02790]

A detailed projection of time and costs for next planning horizon, having an expected precision variance of 10% or less; team involved in this estimate and willing to commit to it. Also called a Commitment Estimate. [D02220]

Estimate Class B

An estimate based on completed preliminary design drawings. Upon acceptance, these estimates shall become the cost plans for project cost control during design. [D02791]

An estimate based on at least two levels of a documented work breakdown structure, having an expected precision variance of 25% or less; project manager and/or subject matter experts developed this estimate. Also called a Preliminary Estimate. [D02222]

Estimate Class C

An estimate based on completion of all work necessary to undertake preliminary design. This estimate must be based on knowledge of site conditions adequate to enable the identification of site related risks and the development of corresponding contingency costs that are sufficient for making correct investment decisions. [D02792]

Ballpark estimate used only in preliminary discussion of feasibility having a precision variance of 50% or more; not to be used for making commitments. Also called a Sizing Estimate. [D02238]

Estimate Class D

An "Order of Magnitude" estimate only. In all cases, where alternative solutions are considered, this estimate should be provided for each solution to assist cost comparison. [D02793]

An estimate based on a comprehensive statement of requirements in mission terms and an outline solution. Such an estimate is strictly an indication of the final cost and completion date. [D02794]

Estimate Conversion

The reassembly of the components of an estimate into a fiscal or project budget, typically for approval and control purposes. [D02717]

Estimate to Complete ("ETC")

The value expressed in either dollars or hours developed to represent the cost of the work required to complete a task. The ETC is calculated as BAC - BCWP. [D00618]

The expected additional cost of an activity, a group of activities, or of the project when the defined scope of work is completed. Most techniques for forecasting ETC include some adjustment of the original cost estimate based on project performance to date. See also earned value and estimate at completion. [D00617]

A cost type. An estimate of the value that remains to be committed within a cost class as of a specified date. The Estimate to Complete, when added to the commitment to date yields the estimated cost at completion of the scope of work in the class. This information should be updated monthly. A rigorous review of the Estimate to Complete for each cost class should be implemented by the project manager at regular specified intervals. [D00619]

An Estimate of the time and/or effort required to complete the activity. [D03841]

Estimate, of cost

Prediction or forecast of costs that will occur in the future, but are not yet committed; a cost type. Estimates are described or qualified based on the supporting design information available at the time the estimate is prepared. In ascending order of precision and certainty, the following descriptions are used for estimates of the final project cost, the names being a reflection of the stage in which they are prepared:

1. Order of Magnitude
2. Feasibility
3. Capital Appropriation
4. Design Review
5. Pre-tender
6. Post-tender

[D00613]

Estimated Actual at Completion ("EAC")

An estimate of the cost at completion based on the original planned performance. The EAC is given by the sum of the remaining cost and ACWP.
Editor's Note: A problem with the Earned Value approach to estimating the final cost is that it does not take account of the falling away of productivity as the work comes to an end and any "undiscovered rework" that may emerge. [D02252]

Estimated Completion Date

The predicted date at which all requirements for a defined task will be completed. [D00620]

Estimated Cost at Completion

Actual Direct Costs, plus all related indirect costs, plus the estimate of costs, both direct and indirect for all the work remaining. See also Forecast Final Cost. [D00621]

Estimated Cost to Complete ("ECC")

The remaining costs to be incurred to satisfy the complete scope of a project at a specific data date. The difference between the cost to date and the forecast final cost. [D00622]

Estimated Final Cost ("EFC")

See Forecast Final Cost. [D00623]

Estimated Market Penetration

See Market Share.
Editor's Note: Moral values vary considerably between different cultures. Moral values are not necessarily supported by the law of the land. [D02719]

Estimating

Calculating approximately the probable cost or value. [D00624]

The act of combining the results of post project reviews, metrics, consultation and informed assessment to arrive at time and resource requirements for an activity. [D00625]

An assessment of the anticipated cost of implementing all or part of a project. [D03842]

Estimating Costs

The process of forecasting a future result in terms of cost, based upon information available at the time. [D03498]

Estimating Factor

A multiple used to estimate cost or price based on a linear relationship with a product characteristic or an element of cost. [D03499]

Estimator's Allowance

An allowance included in a concept estimate because the estimator cannot predict the method the Consultant will use to satisfy the scope requirements for the project. [D00626]

ETC

See Estimate to Complete

Ethical

Behavior consistent with established ethics or moral values. [D02720]

Ethics

A set of moral principles or values: the principal of conduct governing an individual or group. [D00627]

EV

See Earned Value

See Expected Value

Evaluate

To appraise or determine the value of information, resources, or options.
Editor's Note: An evaluation or appraisal is usually distinguished by the thoroughness involved. [D00628]

Evaluation

A thorough appraisal or determination of the value of information, resources, or options. [D02721]

The process of determining satisfaction of requirements. Evaluations may include methods such as analyses, inspections, reviews, and tests. For acquisition, evaluations are conducted throughout the contract period of performance. [D05179]

Evaluation Factors

Those elements (technical, cost, management, etc.) the buyer considers most important and is the basis for proposal evaluation. [D04088]

Evaluation of Progress

A careful assessment of the work completed to date as compared to the baseline plan. [D02722]

Event

A point in time when certain conditions have been fulfilled, such as the start or completion of one or more activities. [D00634]

A happening or occurrence, outcome of an activity or decision point between activities. [D00629]

A point that is the beginning or end of an activity and identified by the I-node or J-node respectively. [D00630]

An event is an identifiable single point in time on a project. [D00631]

In CPM and PERT networks, the end state for one or more activities that occurs at a specific point in time. [D00632]

The completion or beginning of an activity. [D00633]

Something that happens at a point or moment in time. A significant event is often called a "milestone." [D04634]

Event Oriented

A planning approach focusing on events rather than activities. [D00635]

Event Oriented Schedule

Systems which present information in terms of events (i.e. points in time). See Arrow Diagramming. [D00636]

Event-driven Review

A review that is performed based on the occurrence of an event within the project (e.g., a formal review or the completion of a life cycle stage). [D05180]