Variance at Completion (VAC) with TCPI measures the variance between the budget at completion (BAC) and the earned value (EV) adjusted by the required cost efficiency (TCPI) for the remaining work. It provides insights into whether the project is expected to be under or over budget based on the required efficiency. A positive VAC indicates cost savings, while a negative VAC suggests cost overruns. VAC helps in assessing the overall cost performance of the project.
Calculation: VAC = BAC - (EV / TCPI)
Make sure you never miss out! Sign up to our monthly newsletter to keep up with the biggest news stories in construction and the latest Raildiary updates. Full of our latest case studies, blogs and fun quizzes!