Estimate at completion & cost-to-complete
Where does this job land if today's trend holds? EAC, variance to budget, and how much margin is fading, from three or four numbers.
Sample inputs (illustrative): a $4.8M job budgeted at $4.25M, 58% complete with $2.61M spent.
How this is calculated
Estimate at completion (EAC) is what the job will cost when it's done. Cost to complete (ETC) is what's left to spend. Two common ways to get there:
From % complete: EAC = cost to date ÷ % complete From remaining est.: EAC = cost to date + estimate to complete Variance = budget − EAC (negative = overrun) Cost to complete = EAC − cost to date CPI = (budget × % complete) ÷ cost to date Original margin = (contract − budget) ÷ contract Projected margin = (contract − EAC) ÷ contract Fade = original margin − projected margin
Which method to trust
The % complete method assumes the rest of the job performs like the part already built. It's a quick sanity check. The remaining-estimate method is how PMs should forecast: walk every cost code, count what's left and what's committed. When the two disagree by a lot, find out why before month-end.
What fade means
Fade is margin erosion between the bid and today's forecast. A job bid at 11% that now projects 6% has faded 5 points. Fade caught at 30% complete is a conversation; fade found at 90% is a write-down. In remaining-estimate mode, % complete is implied as cost to date ÷ EAC.
Stop re-keying the numbers behind this math.
We're building one record for contracts, change orders, job cost and billing, with founding contractors, so WIP, retainage and cost-to-complete are already right when you open them.