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What are Forecast & Uncommitted amounts?

Forecasts or Uncommitted amounts are line items, scope, risks or anything - that has been allocated or identified as a cost to your budget, but has not yet been approved under a contract, purchase or expense. Listing Forecast & Uncommitted amounts against budgets is key to reporting an accurate Final Forecast Cost / Estimate At Completion.

Final Forecast Cost / Estimate At Completion = Actual Cost to Date + Remaining Committed Amounts + Forecast & Uncommitted

For thoroughness, note that:‍

Estimate to Complete (ETC) = Remaining Committed Amounts + Forecast & Uncommitted

Challenges with Managing Forecast & Uncommitted

Common challenges we see in managing forecast and uncommitted costs:

❌ Incomplete Cost Tracking: Failing to account for unapproved scope or future costs can lead to unexpected budget overruns.

❌ Fragmented Data: Collecting and consolidating uncommitted amounts into financial registers can be time-consuming and complex.

❌ No Risk Allowance: Realised or known risks need allowance. Failing to incorporate risks as uncommitted amounts will lead to budget overruns.

❌ Forecast Accuracy: Ensuring the accuracy of final forecast costs without comprehensive tracking can be challenging without detailed lists.

❌ Real-Time Updates: Keeping track of changes and updates to forecasted and uncommitted costs in real-time can be complex.