What is VAC (variance at completion)?

    Variance at completion is the forecast difference between the budget and the final cost. A negative figure forecasts an overrun.

    Also written as VAC

    VAC is only as reliable as the estimate at completion it is based on.

    Formula

    VAC = BAC − EAC

    Worked example

    A project has a $12 million budget (BAC). At the reporting date, $5.2 million of work was planned (PV), $4.8 million has been earned (EV) and $4.55 million has been spent (AC). VAC = $12m − $11.375m = +$625,000, a forecast underrun.

    Related terms

    Estimate at completion

    EAC

    The forecast total cost of the work when it's finished, based on performance so far and what's left to do.

    Formula and example

    Budget at completion

    BAC

    The total approved budget for the work being measured.

    Cost variance

    CV

    The difference between the value of work completed and what it actually cost.

    Formula and example
    PreviousETC (Estimate to complete)NextTCPI (To-complete performance index)

    Building better project controls?

    Strataverra is launching first for EPCM projects, shutdowns and turnarounds. Join the early access list for updates, or see where your team stands with the free assessment.