Estimate to Complete(ETC)
The projected cost to finish remaining work on a contract or project based on current status.
Overview
Estimate to Complete (ETC) is a forward-looking metric that predicts the cost required to complete all remaining work. Combined with actual costs incurred, ETC supports earned value management and contract financial forecasting.
Why It Matters in GovCon
Government contractors use ETC for internal planning, IPT reviews, and customer reporting. On cost-type contracts, ETC informs funding requests and budget baselines. Accurate ETC supports contract performance and financial health.
Key Details
- Formula: EAC (Estimate at Completion) = Actual Cost + ETC.
- Earned Value: ETC is integral to CPI and EAC calculations in EVM.
- Updates: ETC should be revised as work progresses and conditions change.
- Reporting: Often required in contract status reports (e.g., CPR, CFSR).
Related Terms
- Estimate at Completion (EAC)
- Earned Value Management (EVM)
- Cost Performance Index (CPI)
- Contract Funds Status Report (CFSR)
More Finance Terms
A guarantee submitted with a bid that ensures the bidder will enter into a contract if selected and provide required performance and payment bonds.
The government's internal estimate of what a procurement should cost, used to evaluate the reasonableness of contractor proposals.
Overhead costs that support the overall organization rather than direct contract performance.
Costs that cannot be traced to a single contract but are allocated across projects via indirect rates.
The total cost of owning, operating, maintaining, and disposing of a system or product over its entire useful life.
Costs that can be identified specifically with a contract or project but are not labor or materials — such as travel, subcontracts, or specialized services.
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