| # Contract Overall Performance The Contract Overall Performance chart is a traffic light based metric that provides a graphical view of the overall performance of the contract. Traffic Light indicators Current Profit Green Current Profit is positive. Red Current Profit is negative. Expected Profit Green Expected Profit is positive. Red Expected Profit is negative. Contract Profitability Analysis To maintain the profit data for the contract, the key metrics indicators used in this chart are Current profit, Expected Profit, and Planned profit. These metrics are calculated as: Current Profit = Revenue Recognized – Cost of Sales Expected Profit = Contract Amount – Estimated Budget at Completion Planned Profit = Contract Amount – Budget Amount Revenue Recognized = Sum of all the Interim Revenues Results by contract line Cost of Sales = Sum of all the Interim Costs Results by contract line Contract Amount = Sum of all the contract line amounts Estimated Budget At Completion (EAC) = Sum of all the EAC amounts for the projects linked to the contract line If the Current Profit is negative, the traffic light indicator is Red, indicating the possibility of a loss and that the user must take action. If the Expected Profit is less than the Planned Profit, the traffic light indicator is Red. If the Expected Profit is equal to or greater than the Planned Profit, the traffic light indicator is Green. |