Understanding Forecast Final Cost (FFC) in Mastt

Forecast Final Cost (FFC) is one of the most critical financial metrics in construction project management. It provides your best estimate of total project cost at completion by combining committed costs with projected costs for remaining work. Understanding how Mastt calculates and updates FFC will help you better manage project budgets and make informed financial decisions throughout your project lifecycle.

Before you start:

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

Understand What Forecast Final Cost Means

Forecast Final Cost (FFC) 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 FFC is your best answer based on current information.

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

Learn How Mastt Calculates FFC

Mastt calculates FFC 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 Variations - Variations that have been fully approved
• In Principle Variations - Variations 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 Variations - Estimated variations that haven't been submitted yet
• Pending Variations - Variations that have been submitted but await approval
• Open Forecasts - Any other forecasted costs you've entered for future work, like Contingencies or Risk Provisions

Result: When you add Current Contract plus Forecast & Uncommitted, you get a comprehensive view of your total expected expenditure.

Locate FFC 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 FFC column on the right side of the table

In this view, you can see:

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

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

Locate FFC in the Cash Flow Module

1. Click Cash Flow in the top navigation bar
2. Locate the Forecast Final Cost 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 FFC 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 FFC is for each budget line
• Cash Flow shows WHEN those forecasted costs will occur

Update FFC by Modifying Underlying Components

You cannot edit FFC directly because it's a calculated field. To update FFC, 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 Variation? (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 FFC, you need to update one or more of the components that feed into the calculation. The process depends on which component you're updating:

To change a Variation:

Navigate to the Variations register, locate the variation you want to modify, and update the variation amount. The FFC will recalculate automatically once you save your changes.

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

To change a Contract:

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

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

To change a Forecast:

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

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

Step 3: View Updated FFC

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

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

Use FFC for Ongoing Project Management

Monitor FFC continuously:

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

Identify trends and issues early:

• Compare your FFC to your Budget column to see variances
• Example: If your Budget was $10 million and your FFC 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 FFC shows you're trending over budget, you might:

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

Plan cash flow timing:

1. Navigate to the Cash Flow module to view FFC 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 optimise fund allocation before costs are due

Troubleshooting and FAQs

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

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

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

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

Q: How often does FFC update?

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

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

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