Budget at Completion (BAC) is a term used in project management to refer to the total budget allocated for a project. It is the sum of all costs associated with the project, including labor, materials, and overhead. The BAC is established at the beginning of the project and serves as a benchmark against which actual costs are compared.
The BAC is an important tool for managing projects. It provides a baseline for tracking progress and helps ensure that resources are allocated efficiently. By comparing actual costs to the BAC, project managers can identify areas where costs may be exceeding expectations and take corrective action if necessary.
The BAC is calculated by adding up all of the estimated costs associated with the project. This includes labor, materials, overhead, and any other expenses that may be incurred during the course of the project. Once the BAC has been established, it should be monitored throughout the duration of the project to ensure that it remains within budget.