Understanding Estimate at Completion (EAC) in Mastt

Estimate at Completion (EAC) is one of the most critical financial metrics in construction project management. It represents the best forecast of the total project cost at completion, combining the costs already committed with the projected costs for the remaining work. Understanding how Mastt calculates and updates EAC will help you better manage project budgets and make informed financial decisions throughout your project lifecycle.

Before you start:

• Understanding of contracts, change orders, and forecasts in Mastt will provide additional context

Understand What Estimate at Completion Means

Estimate at Completion (EAC) estimates the total cost of your project when complete. It's not just what you've spent so far - it combines your committed costs with your projected costs for all remaining work.

Think of it this way: if someone asked you right now, "What will this project cost when everything is finished?" - the EAC is your best answer based on current information.

EAC is crucial because it:

• Helps you understand your project's financial trajectory
• Enables informed decision-making about costs and resources
• Helps you anticipate budgetary needs for your finance team
• Allows you to identify potential overruns early
• Enables you to implement corrective measures in a timely manner

Important: EAC is dynamic and changes throughout the project as contracts, change orders, and forecasts are added or updated. It's a calculated field that updates automatically - you cannot edit EAC directly.

Learn How Mastt Calculates EAC

Mastt calculates EAC automatically using this formula:

What's included in Current Contract

This represents what's already committed - the money you're definitely going to spend:

• Approved Contracts - Your contracts that have been approved and are active
• Approved Change Orders - Change Orders that have been fully approved
• In Principle Change Orders - Change Orders that have been agreed to in principle

What's included in Forecast & Uncommitted

This represents what's potentially coming - costs that aren't fully committed yet but are likely or possible:

• Pending Contracts - Contracts that are in process but not yet approved
• Forecast Change Orders - Estimated changes that haven't been submitted yet
• Pending Change Orders - Change Orders that have been submitted but await approval
• Open Forecasts - Any additional forecasted costs entered for remaining work, including Contingencies or Risk Provisions

Result: When you combined the Current Contract with Forecast & Uncommitted amount, you get a complete view of you total expected expenditure.

Locate EAC in the Cost Module

1. Navigate to your Cost module by clicking Cost in the left-hand navigation bar
2. You'll land on the Overall page where you can see your budget structure
3. Locate the EAC column on the right side of the table

In this view, you can see:

• EAC for your overall project at the top level
• EAC broken down by individual budget lines (Construction Budget, Contingency Budget, etc.)

Tip: Hover your cursor over the EAC column header to see the formula breakdown.

Locate EAC in the Cash Flow Module

1. Click Cash Flow in the top navigation bar
2. Locate the Estimate at Completion column on the left side of the table
3. Notice the monthly columns across the screen

In Cash Flow, you can manually enter your forecasted costs across monthly periods. This helps you plan when costs will be incurred and when funds will be needed.

Cash Flow takes your EAC value and shows:

• When costs will be incurred each month
• How to plan for financial needs over time
• When funds must be available to meet obligations

Summary of locations:

• Cost Overall shows WHAT your EAC is for each budget line
• Cash Flow shows WHEN those forecasted costs will occur

Update EAC by Modifying Underlying Components

You cannot edit EAC directly because it's a calculated field. To update EAC, you must update the underlying components that feed into the calculation.

Step 1: Identify Which Component to Update

Ask yourself:

• Do I need to update a Contract amount? (affects Current Contract)
• Do I need to modify a Change Order? (affects Current Contract or Forecast & Uncommitted depending on status)
• Do I need to change a Pending Contract? (affects Forecast & Uncommitted)
• Do I need to adjust a Forecast? (affects Forecast & Uncommitted)

Step 2: Update the Underlying Components

To change EAC, you need to update one or more of the components that feed into the calculation. The steps vary depending on which component you’re changing:

To change a Change Orders:

Navigate to the Changes register, locate the change you want to modify, and update the change amount. The EAC will recalculate automatically once you save your changes.

For detailed instructions, see How to Edit and Delete Changes.

To change a Contracts:

Navigate to the Contracts register, locate the contract you want to modify, and update the contract amount or status. The EAC will recalculate automatically once you save your changes.

For detailed instructions, see How to Edit and Delete Contracts.

To change a Forecasts:

Navigate to the Forecasts register, locate the forecast item you want to modify, and adjust the forecast amount. The EAC will recalculate automatically once you save your changes.

For detailed instructions, see How to Edit and Delete Forecasts.

Step 3: View Updated EAC

1. Navigate back to the Cost module by clicking Overall in the top navigation
2. Locate the EAC column for the budget line that contains your updated component
3. Notice that the EAC has automatically updated to reflect your changes

The EAC recalculates immediately based on the latest data in your project. You don't have to remember to manually update it - Mastt does it for you.

Use EAC for Ongoing Project Management

Monitor EAC continuously:

• Set a regular cadence (weekly or monthly) to review your EAC
• Make it part of your regular project reviews
• Compare your EAC to your original budget to identify variances

Identify trends and issues early:

• Compare your EAC to your Budget column to see variances
• Example: If your Budget was $10 million and your EAC is now $10.5 million, you have a $500,000 variance that needs attention
• The earlier you spot trends, the more options you have to address them

Make informed decisions:

If EAC shows you're trending over budget, you might:

• Investigate cost-saving opportunities
• Re-prioritize scope
• Request additional budget from stakeholders
• Implement tighter change control processes

Plan cash flow timing:

1. Navigate to the Cash Flow module to view EAC distributed across monthly periods
2. Work with your finance team to ensure adequate funding is in place for each period
3. Use the Cash Flow view to optimize fund allocation before costs are due

Troubleshooting and FAQs

Q: Why can't I edit the EAC value directly?

EAC is a calculated field that updates automatically based on your contracts, change orders, and forecasts. To change EAC , update the underlying components rather than editing the EAC value itself.

Q: What if my EAC is higher than my original budget?

Review which components are driving the increase by checking your pending contracts, forecast change orders, and open forecasts in the Cost module. This early visibility allows you to investigate cost drivers and take corrective action.

Q: How often does EAC update?

EAC recalculates immediately whenever you add, edit, or approve a contract, change order, or forecast. The value is always current based on your latest project data.

Q: What's the difference between EAC in Cost Overall and Cash Flow?

Cost Overall shows the total EAC amount for each budget line. Cash Flow shows the same EAC amount distributed across monthly periods, helping you plan when funds will be needed.