1. What is the EAC Extension Calculator?

The EAC (Estimate At Completion) Extension Calculator for California projects calculates the projected total cost of a project based on current performance metrics. It helps project managers forecast the final cost and make informed decisions.

2. How Does the Calculator Work?

The calculator uses the EAC formula:

Where:

• \( BAC \) — Budget At Completion ($)
• \( CPI \) — Cost Performance Index (unitless)

Explanation: The formula divides the original budget by the cost performance index to estimate the final project cost based on current spending efficiency.

3. Importance of EAC Calculation

Details: Accurate EAC estimation is crucial for California construction projects to monitor budget performance, identify cost overruns early, and ensure proper financial planning and resource allocation.

4. Using the Calculator

Tips: Enter BAC in dollars and CPI as a unitless value. Both values must be positive numbers greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is BAC in project management?
A: Budget At Completion (BAC) is the total budget allocated for the complete project scope.

Q2: How is CPI calculated?
A: CPI = Earned Value (EV) / Actual Cost (AC). It measures cost efficiency of project work.

Q3: When should EAC be calculated?
A: EAC should be calculated regularly throughout the project, especially when there are significant changes in project performance or scope.

Q4: What does an EAC higher than BAC indicate?
A: An EAC higher than BAC indicates the project is likely to exceed its original budget, signaling potential cost overruns.

Q5: Are there other EAC formulas?
A: Yes, there are several EAC formulas. This calculator uses the BAC/CPI method which assumes future performance will follow current trends.