AACE EVP key terms

A project performance method that compares the value of work completed against the planned value and the actual cost, giving objective indicators of schedule and cost status.

The authorized budget assigned to scheduled work at a given point in time; it represents what the project should have accomplished and spent by that date.

The budgeted value of work actually completed by a given date, calculated from the baseline budget for those activities rather than from what was spent on them.

The total cost actually incurred and recorded for work performed during a given period, including direct labor, materials, and other charges posted to the project.

The sum of all authorized budgets established for the total scope of work on a project; the baseline total against which final performance will be judged.

The difference between earned value and actual cost. A positive result means work is costing less than budgeted; a negative result means it is costing more.

The difference between earned value and planned value, expressed in budget currency. A negative result indicates less work was completed than scheduled.

Earned value divided by actual cost. A value below 1.0 means each unit of currency spent is buying less than one unit of planned work.

Earned value divided by planned value. A value below 1.0 means work is progressing more slowly than the baseline schedule assumed.

A forecast of the total cost the project will have incurred when all work is finished, typically derived by adjusting the budget at completion for expected performance.

The expected cost of the remaining work, calculated as the forecast total cost at completion minus costs already incurred to date.

The projected final cost difference, calculated as the budget at completion minus the estimate at completion. A negative value signals an expected overrun.

The cost efficiency the remaining work must achieve to hit a specified target, calculated as remaining budget divided by remaining work.

A hierarchical decomposition of total project scope into progressively smaller deliverables and work packages that can be estimated, scheduled, and controlled.

A management point in the work breakdown structure where scope, budget, actual cost, and schedule are integrated and compared against baseline for performance measurement.

The lowest level of the work breakdown structure at which work is estimated, scheduled, and tracked; it sits beneath a control account and has defined scope, dates, and budget.

A work breakdown structure element below a control account that holds budget and scope for future work not yet detailed into individual work packages.

The time-phased budget plan for all authorized work, against which project execution is measured; it excludes management reserve and undistributed budget.

A budget held outside the performance measurement baseline by management for unanticipated scope within the project's authorized work; its use requires formal approval.

Authorized budget for work that has been identified in scope but not yet assigned to a control account or planning package for performance measurement.

Budget set aside inside the baseline for known risks and uncertainties with identified causes, used to absorb impacts without changing the performance measurement baseline.

The rule chosen for each work package to quantify physical progress objectively, such as weighted milestones, percent complete, or units completed.

A measurement technique in which a work package is divided into milestones, each assigned a budget value, and earned value is claimed as each milestone is formally achieved.

A measurement approach where earned value equals the estimated fraction of a work package finished multiplied by its budget; best used for long-duration tasks with measurable progress.

A measurement technique that credits earned value in proportion to the number of identical or similar units produced, using a fixed budget per unit.

A time-based extension of earned value that converts earned value into the schedule period in which it was planned to be achieved, yielding schedule variance and index in time units.

An approved, time-phased plan for scope, schedule, and cost against which actual performance is compared; changes to it require formal control.

A joint review by customer and contractor of the performance measurement baseline to confirm it is realistic, complete, and technically sound before or during execution.

The formal process for identifying, evaluating, approving or rejecting, and documenting changes to project scope, schedule, or cost baselines.

Any addition, deletion, or modification to the agreed project scope; when approved, it typically requires a corresponding adjustment to budget and schedule baselines.

A reallocation of budget and schedule among remaining work within the existing baseline, used when execution deviates but total scope and budget remain unchanged.

The traditional name for planned value: the budget assigned to work that was scheduled to be accomplished by a given reporting date.

The traditional name for earned value: the budget assigned to work that has actually been completed by a given reporting date.

The traditional name for actual cost: the costs actually incurred for work completed during a given reporting period.

The practice of comparing planned, earned, and actual results, explaining the causes of significant deviations, and deciding what corrective action is warranted.

The periodic communication of planned versus actual cost and schedule performance, variances, and forecasts to stakeholders in a consistent, agreed format.

The process of projecting future cost and schedule outcomes using current performance indices, trends, and known risks to support management decisions.