PCA Terms

Question 1

ACR

Answer 1

Accrued Costs - Invoices received but not yet approved AND cost estimate of work performed, goods received & services rendered but not yet invoiced.

Question 2

ACWP

Answer 2

Actual Cost of Work Performed - An estimate of the value of work performed, goods received, and services rendered at any given point in time. Costs are incurred if goods or services are delivered, executed, or discharged and received by Williams or its authorized agent or representative. Acceptance of a product or goods and services may take place at port of entry, factory or at the construction site. The cost of work completed by a contractor or vendor also applies if the work is in fabrication shops and/or vendor shops

Question 3

AFUDC

Answer 3

Allowance for Funds Used During Construction - Cost of debt (and equity for FERC regulated projects) used to finance construction of an asset.

Question 4

Baseline Schedule

Answer 4

A task by task estimate that represents the current scope or work packages, how long they will take, what resources they require and what order they should be executed. (Note: The baseline is then frozen, and the actual project is tracked against that baseline

Question 5

BAC

Answer 5

Budget At Completion - The total budget allocated to a project/program

Question 6

BV

Answer 6

Budget Version - An identifier of a project’s financial snapshot in Oracle.

Question 7

CC

Answer 7

The value of a financial obligation that the company has made.

Question 8

CONT

Answer 8

Contingency - An amount added to a base cost estimate to allow for known uncertainty and event risk.

Question 9

EAC

Answer 9

Estimate at Completion - Represents the best estimate of the final cost of a project and is based on knowledge available (commitments, risks, trends, progress, or other performance factors) at the time of preparing the forecast = ACWP + Estimate to Complete (ETC).

Question 10

ETC

Answer 10

Estimate to Complete - Also known as the “Cost Forecast” – the best estimate looking forward to complete the remaining project scope, based on current spend rates and efficiencies (= EAC - ACWP).

Question 11

G&A

Answer 11

General & Administrative Costs - See Overhead definition. At Williams, capitalized G&A usually refers to overhead on regulated projects.

Question 12

OVH

Answer 12

Overhead - Any expense that supports construction of assets but is not directly related to construction activities. This could refer to costs related to upper management, accounting / support services or non-labor costs associated with labor charged to capital projects. At Williams, capitalized overhead usually refers to the non-labor costs allocated to non-regulated projects

Question 13

PC

Answer 13

Processed Costs - Invoices approved and received in Oracle. Represents the total amount of costs charged to a work order since the inception of the project through AP, payroll, or overheads. Processed costs exclude Accruals.

Question 14

PCR

Answer 14

Project Change Request - A modification to the budget or funding, forecast, scope, execution, or contract. Project changes should be tracked and monitored in the change log.

Question 15

SB

Answer 15

Sanction Budget - The amount of funds that management approved at the Commitment Gate and is funded to complete 100% of the project.

Question 16

SM

Answer 16

Seed Money - Authorized capital funding prior to g3 utilized to fully define the scope of work of the sub-project (Must be part of a Board Authorized Program).

Question 17

VAR

Answer 17

Variance - Also known as “Cost Variance.” This is “Estimate at Completion” minus “Budget at Completion” = EAC - BAC