Budgeted Cost of Work Remaining (BCWR)

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Budgeted Cost of Work Remaining (BCWR)

Budgeted Cost of Work Remaining (BCWR) represents that portion of the budget for work not yet accomplished within a Control Account. It is the difference between the Budget at Completion (BAC) and the cumulative Budgeted Cost for Work Performed (BCWP), or BAC - BCWPCUM.

The BCWR is used in data analysis. The comparison of the BCWR, the work remaining to be performed and the Estimate to Complete (ETC), the funds estimated to perform that work, is a check on the realism of the Estimate at Completion (EAC). If there were a large divergence in these numbers, the EAC may not be enough, or more than necessary, to complete the work. This is accomplished using cumulative data and is called the To Complete Performance Index (TCPI). The TCPI is a measure of performance required to achieve the Estimate at Completion (EAC) and is calculated as:

TCPIEAC = Budgeted Cost of Work Remaining = BAC-BCWPCUM
    Estimate to Complete   EAC - ACWPCUM

IEAC = ACWPCUM + (BAC - BCWPCUM)
        (BCWPCUM/ACWPCUM)

The BCWR is also affected if a control account were terminated while in process. If this occurs, the control account is closed and the budget associated with the remaining work, the BCWR, is returned to Management Reserve (MR), or to the Undistributed Budget during a Stop Work Order (SWO).

A monthly comparison of the BCWR and the ETC is a proven indice to assist the Control Account Manager (CAM) with data analysis.

Resource: Control Account Manager (CAM) training



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