How to Create Forecasts

Forecasts are anticipated cost projections that help you plan for potential costs during your project lifecycle. Use forecasts to communicate your estimate at completion cost with greater certainty and maintain better financial control throughout your project.

Before you start:

• Ensure you have access to the project
• Gather supporting documentation for your forecast estimates
• Identify which forecast type best suits your cost projection

Understanding forecast types

Uncommitted Forecast Cost estimates based on professional judgment, often optimistic projections. Use for potential work that may be required but isn't yet committed.

Example: An allowance of $10,000 for additional site preparation work that may be required.

Owner Contingency Budget amounts reserved for management control and unforeseen work. These are funds held by the owner to cover unexpected changes.

Example: A management reserve of 10% ($100,000) held by the owner to cover unexpected scope changes.

Project Contingency Additional resources allocated beyond the base estimate for inherent risk. Managed by the project team to address unknown conditions.

Example: A project contingency of 10% ($100,000) to address unknown conditions encountered during construction.

Risk-Based Forecasts Derived from proven risk assessment linked to identified risks in the project.

Example: Risk number 10 is Design Risk with an estimated impact of $10,000.

Steps

Navigate to Forecasts

1. From your project dashboard, click Cost in the side navigation bar
2. Click the Forecast tab at the top navigation

Create your forecast

1. Click the + Add Forecast (blue button, top left)
2. Enter a descriptive name in the Title field (e.g., "Additional site preparation work")
3. Click the Type drop-down menu and select your forecast type
4. Click in the Starting Amount field and enter your estimated cost (e.g., $10,000)
5. Click the Budget drop-down and choose the relevant budget category for your forecast
6. Add reasoning in the Notes field or if you have supporting documents, click the Attachment button to upload them
7. Click Add to create your forecast

Result: Your forecast now appears in the list below and is automatically included in the estimate at completion cost calculations.

Best practices

• Review forecasts regularly to maintain accuracy
• Document the basis for each forecast in the notes field
• Update forecasts promptly when new information becomes available
• Use appropriate forecast types to maintain clear cost categories