Definition:
The estimated remaining cost required to complete a project from a given point.
ETC=EAC−AC
Key Components:
- Remaining Work Assessment: Estimates future expenses.
- Budget Forecasting: Helps control project costs.
- Performance Consideration: Adjusts based on past cost trends.
Use Cases/Industries:
- Construction: Estimating costs for remaining site development.
- Energy Sector: Forecasting funds needed to complete a solar power project.
- IT Projects: Budgeting remaining software development efforts.
Advantages:
- Helps in financial planning and risk mitigation.
- Supports proactive cost control.
- Aligns cost tracking with project execution.
Challenges:
- Inaccurate projections can mislead stakeholders.
- Requires continuous updates to reflect real conditions.
Related Terms:
Estimate at Completion, Cost Performance Index, Earned Value
Example:
A $5M project with $3M spent and an EAC of $5.5M has an ETC of $2.5M.
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Synonyms:
Remaining Budget Estimate, Forecasted Completion Cost, Work-In-Progress Cost Estimate
