Setting and reviewing project Baseline

⏱️ 9 minute read

The Forecast Baseline feature allows one to pre-scope a project's financials to create a realistic proposal for any potential client. Baseline can help with scoping and can assist with avoiding scope creep.

This article includes:

• Overview of Project Baseline
• Step 1: Adding a Baseline to the Project
• Step 2: Configure your Baseline settings
• Step 3: Creating a new phase
• Step 4: Plan your project's costs and deliverables
• Step 5: Create Placeholders
• Step 6: Exporting your Baseline
• Step 7: Reviewing your Baseline estimations

Overview of Project Baseline

Baseline is a financial pre-scoping tool in Forecast that adds an extra layer of financial oversight. It allows you to design a proposal, scope the project based on that proposal, and track it against actuals once the project is underway. By outlining work, expenses and deliverables upfront, the Baseline ensures the team does not plan or deliver more work than what was agreed with the client.

Step 1: Adding a Baseline to the Project

You can enable the Baseline feature either during initial project creation or later through the project settings.

When creating a project

1. Click Projects in the top bar and select All Projects (or click Create > Project from anywhere in the platform).

2. Click New Project.

3. Fill in the project name and any other necessary details.

4. Click the More Settings dropdown.

5. Under Work With Baseline, select Yes.

Adding a Baseline after the project is created

1. Click Projects in the top bar and select All Projects.

2. Open the specific project you want to update.

3. In the left-hand panel, click Settings, then select Financials.

4. In the Baseline section, turn on the toggle to enable the feature.

Enabling Deliverables

The Deliverables feature allows you to separate high-level value from granular day-to-day work. It is available on any project that has the Baseline feature enabled.

• To start using this feature, navigate to Settings > Tasks > Deliverables within your project and turn on the Enable toggle.

Step 2: Configure your Baseline settings

You can customize your Baseline settings at any time by clicking the Baseline Settings button on the main Baseline page.

Step 3: Creating a new phase

Once the Baseline is enabled, you can scope your project by defining phases. Note that any phase created in the Baseline section will automatically sync to the Scoping page.

How to create a new phase

1. Open your project and expand the left sidebar to select Baseline.

2. Ensure the project start and end dates are set.

3. Click Manage Phases, then select Add new Phase.

4. Enter a name and date range, then click Save Changes.

How to reorder phases

1. Under Baseline, click the arrow next to Edit Baseline and select Manage Phases.

2. Select your preferred order from the dropdown menu:

   1. By start date (Ascending)
   2. By start date (Descending)
   3. Custom (Allows you to drag and drop phases manually).
3. If you selected Custom, you can drag and drop the phases to reorder them manually. 
4. Click Save Changes.

How to delete a phase

1. Within the Baseline section, click on Manage Phases.

2. Locate the phase you wish to remove and click the three dots at the end of the row.

3. Select Delete Phase.

4. Click Save Changes to finalize the deletion.

Step 4: Plan your project's costs and deliverables

With your phases in place, you can now build a financial overview of the work, deliverables, and costs involved.
You can create Baseline estimates not just per Phase, but specifically per Deliverable, allowing you to map out your project estimates exactly how you present them in your proposals.

Under each phase or deliverable, you can add:

• Time Estimates: They use internal hourly costs and the role-based rate card assigned to the project.
• Expenses Estimates: Potential expenses expected for that particular phase or deliverable. 

Defining Your Deliverables

You can define the major outcomes of your project with Names and Descriptions, focusing on the actual value being delivered rather than granular tasks.

Once defined, you can link individual Tasks and Expenses directly to their relevant Deliverable to keep your work perfectly organized.

Planning Time Estimates

When you enter hours for the roles assigned to a phase, Forecast automatically calculates a financial projection. This includes the Value of Service, Revenue, Cost, Profit, and Margin.

How to add Time Estimates

1. In the Baseline view, click Edit Baseline.

2. Select + Add Hours Estimate (under your chosen Phase or Deliverable).

3. Choose a Role from the dropdown menu and enter the estimated Hours.

4. Click Save Changes.

How to remove Time Estimates

1. Click Edit Baseline.

2. Click the three dots at the end of the row.

3. Select Delete Hours Estimate.

4. Click Save Changes to confirm.

Planning Expenses Estimates

From the Expenses section, it is possible to enter and pre-scope any potential expenses that the project could acquire throughout its phases. The expenses cost will be added into the entries phase cost and Billable T&M and Expenses.

How to add Expenses Estimates

1. In the Baseline view, click Edit Baseline.

2. Click + Add Expense Estimates (under your chosen Phase or Deliverable).

3. Enter the Cost. If the expense is billable, you can optionally include a Markup and/or Revenue amount.

4. Click Save Changes. 

How to remove Expenses Estimates

1. Click Edit Baseline.

2. Click the three dots at the end of the row.

3. Select Delete Expenses Estimate.

4. Click Save Changes to confirm.

Step 5: Create Placeholders

Once your scoping is complete, you can generate placeholders to begin resource planning before the project kicks off. This process creates a Placeholder for every role with estimated hours and a Placeholder Allocation for each corresponding phase.

How to create placeholders

1. Click Create Placeholders, then select Confirm.

2. A confirmation banner will appear at the top of the page with a link to the Demand page, where you can view your new placeholders.

Step 6: Exporting your Baseline

Prevent scope creep by controlling baseline changes through formal approval processes. We strongly recommend exporting your baseline to track progress against your initial plan. If major project shifts require you to create an entirely new baseline, always export the old one first to preserve your history.

How to export the baseline as a CSV or PDF file

1. Customize the view: Click Change View to toggle exactly which information you want included in your CSV export (PDF not impacted).
2. Click on the download icon (down arrow) and select Export CSV or Export PDF.

Step 7: Reviewing your Baseline estimations

Once your Baseline is finalized, you can review your project estimates across three main areas: the Baseline page, the Scoping page, and the Financials Overview page.

Reviewing the Baseline Totals Breakdown

At the top of the Baseline page, you will find a summary of your totals, including:

• Project Dates: The initial dates set during project creation.

• Total Work Estimate: The total hours estimated in your baseline.

• Total Baseline Revenue: The Total Work Estimate multiplied by the assigned role rates.

• Total Baseline Cost: The expected project cost, calculated from your internal hourly cost settings.

• Total Baseline Profit: Total Baseline Revenue minus Total Baseline Cost.

• Fixed Price / Baseline Target: The fixed price (for Fixed Price projects) or the baseline target (for Time & Material projects).

• Value of Service: (Time × Rate) + Expense Revenue. If an expense's cost exceeds its revenue, the cost is used instead)

• Difference: The remaining amount of your fixed price or target that can still be estimated in work.

Reviewing Baseline while Scoping the Project

A common challenge for Project Managers is trying to scope a project with only a lump-sum budget and no context. Baseline solves this by showing the agreed-upon prices for each phase, ensuring your team is aligned with what was actually sold. As you scope, you can easily compare your baseline's estimated hours against your estimated billable time.

To display Baseline on the Scoping page

1. Click on the Scoping tab of the project.
2. Click the eye icon. 
3. Select Baseline Info.

Baseline information in the Project Financials Overview

You can also view your baseline data directly on the Financials Overview page. Once enabled, it appears in three places:

• Budget Graph: A line represents your baseline across the Money, Time, Time & Expenses, and Expense Details views.

• Totals Table: A dedicated column displays your total baseline amount.

• Details Table: A section breaking down baseline data by day or month (depending on your settings).

To display the Baseline within the Financials Overview page

1. Open your project and expand the left-side panel to select Financials.

2. Click on Overview.

3. Click the eye icon.

4. Select the Baseline option from the menu.

Deliverables Reporting

To easily identify which services are profitable without manual data reconciliation, you can track performance, time, and progress grouped by Deliverables directly within the Task Report and Time Registered Report.