The primary purpose of contract forecasting is to ensure that all potential financial issues in a project are dealt with as soon as identified and acted upon in a timely manner to keep the project on a profitable course. Forecasting allows prediction of over/under funding based on productivity, unit, or simple amount-based analysis for the costs incurred or expected, compared to the budgeted values for the project.
For more information, refer to Contract Forecasting with PCI Projections (Classic).