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Cost Code Time Phased Forecasting

v12.05 Forecast

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Written by Theresa Moloney
Updated over a month ago

Overview

Automated Cost Code Time Phased Forecasting uses S-curves to automatically spread your forecast values across future periods, eliminating the need for manual data entry each month. This feature generates future projections for costs, cash flow, and revenue based on assigned S-Curves which can be generated from historical patterns of completed jobs.

With automated time phase forecasting:

  • S-curves are assigned at the jobs, WBS, and/or cost code level

  • Spreads are generated automatically when you create or update forecasts

  • No monthly manual intervention required

  • Project Managers can focus on managing projects, not data entry

Understanding S-Curves

What is an S-Curve?

An S-curve is a graphical representation of how costs typically accumulate over time on a project. The curve resembles an "S" shape:

  • Slow start - Lower costs at project beginning

  • Rapid middle - Highest spending during peak construction

  • Slow finish - Tapering costs at project completion

Why S-Curves Matter

Different types of work follow different patterns:

  • Foundation work - Heavy costs early in project

  • Finishing work - Costs concentrated at the end

  • Overhead - Steady, even distribution

  • Equipment - Concentrated in specific phases

Using the right S-curve for each cost code creates more accurate cash flow and cost projections.

S-Curves Improve Over Time

Accuracy improves with more data and historical patterns become more reliable. As you close more jobs:

  • Generate new S-curves from recent completed work

  • Refine your S-curve library

Manual vs. Automated Spreading: When to Use Each

Use Automated Spreading When:

  • You have completed jobs to base S-curves on

  • Work follows predictable patterns

  • You need efficiency across many jobs

  • Project Managers don't have time for monthly updates

  • You want consistency in forecasting methodology

Use Manual Spreading When:

  • The job is highly unique with unusual timing

  • You have specific milestone-based cash flows

  • Client payment terms are irregular

  • You need to model specific contractual arrangements

  • You're doing detailed "what-if" analysis

Best Approach: Hybrid

Most organizations will benefit from:

  • Automated as default - 80-90% of cost codes

  • Manual overrides - 10-20% of cost codes with unique characteristics

  • Regular review - Quarterly assessment of S-curve accuracy

Best Practices

  1. Start Simple - Use job-level defaults first, add complexity only where needed

  2. Review S-Curves - Examine generated S-curves before using them

  3. Name Clearly - Use descriptive names/prefixes for S-curves

  4. Document Decisions - Note why specific S-curves were assigned to cost codes

  5. Update Regularly - Regenerate S-curves annually as more jobs close

  6. Test First - Try on one job before rolling out company-wide

  7. Train Teams - Ensure Project Managers understand the automation

  8. Monitor Results - Compare automated forecasts to actuals to validate accuracy

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