Earned Value Method (EVM) for Construction Projects: Current Application and Future Projections

Earned Value Method (EVM) is a basic approach of project cost management. However, this method did not be effectively used in construction project cost management. In accordance with national planning, valuation with bill quantity (VBQ) will be the main valuation mode of construction project in future. According to Code of valuation with bill quantity of construction works (GB50500-2008) and the requirements of EVM, this paper analysis the price compositions and characteristics of construction project under VBQ, decompose and induce various cost elements which contained in the project reasonable, and formed target cost control baseline which use EVM to control construction project cost. The method this paper presents can combine project pricing and project progress effectively, and provides a feasible way for applying EVM in construction project cost management.

Although the Earned Value Method (EVM), a multi-dimensional project control system, has been widely used since 1960, there has been little research focused specifically on its application in IS implementation. The management of IS projects--including the accurate forecasting of project duration--is complicated by the strong impact of the learning curve on the effectiveness of EVM. This study makes new contributions by advancing formulas for the accurate prediction of project duration, and by developing a decision support model in which the learning curve is fully integrated with EVM, and performance changes due to learning are isolated from other factors affecting project duration. The study makes three contributions to the understanding and use of EVM in IS implementation: (1) It provides an extended version of EVM, (2) it provides an illustration of the application of EVM to a real project situation based on empirical data from an ERP implementation project, and (3) it provides a theoretical basis for empirical studies of IS project control techniques. The decision support model can be used to determine both the learning curve coefficient and the project completion date during the early stages of a project, and it thus offers a significant practical contribution to the management of IS projects.

The need for easier and more affordable access to oxygen is still an obstacle in some parts of Indonesia, especially in the eastern part of Indonesia. A medical oxygen generator device can answer the problems related to the difficulty of accessing oxygen. There are frequent delays in the completion of the medical oxygen generator project, causing cost overruns and delays in providing first aid. The purpose of this study is to measure the performance of companies project management and provide suggestions for improvement strategies so that companies can improve their project performance. In this study, data collection was carried out by recapitulating some of the estimated project cost data, followed by compiling standard budgets for each project. Based on these two data, the company's project management performance is evaluated using Earned Value method with the CR as the indicator. The goal is to find the best strategies to improve the company’s project management performance based on our results. The proposed measurements provide the stages that have poor performance and then provide solutions for the company for each stage that have poor performance.

In a construction project, there are several aspects that cause the project not to go according to plan. Cost and time are aspects that need to be considered to avoid losses incurred in a project. Jombang-ploso-legundi-gresik road project is one of the road widening projects carried out by PT. Mix Pro Indonesia. The project was carried out with the aim that access to (Surabaya-Mojokerto) or further trans Java toll road is quicker safe and smoother. This research aims to optimize the cost and time on the project using the Earned Value method. Calculations include the calculation of ACWP (Actual Cost of Work Performance), BCWS (Budgeted Cost Work Schedule), and BCWP (Budgeted Cost for Work Performed) using the Earned Value method. From these parameters, estimate aspects of cost and time. As well as project analysis of acceleration on a critical trajectory of work. The results of calculations in the 12th week obtained a BCWS value of Rp 1,216,677,846,400 BCWP = Rp 3,040,372,140,080, ACWP = Rp 3,678,560,000. CV value = -Rp 109,203,495.92, SV = Rp 895,646,816.82, CPI = 0.827, and for SPI = 2,499. From these results it can be seen that the CPI value < 1 which means that there are project expenditures that exceed the original plan. With the results, it can be used as a reference in the implementation of project activities.

In construction projects that occur in Indonesia, implementation often experiences delays and cost losses where the realization in the field does not match the planned schedule and planned budget due to several factors that occur, even though a thorough cost plan has been prepared, in practice in the field there are still many problems that arise problems in implementation. So the Earned Value Concept or EVM (Earned Value Method) method is used to overcome this problem to determine the implementation cost performance during the project and the indicators used for analysis include: BCWP (Budget Cost of Work Performance), BCWS (Budget Cost of Work Schedule), ACWP (Actual Cost of Work Performance), SV (Schedule Variance), CV (Cost Variance), SPI (Schedule Performance Index), CPI (Cost Performance Index), ETS (Estimated Temporary Schedule), and EAS (Estimated All Schedule). This research aims to evaluate the cost performance of the Wirosari - Karangasem Subdistrict road section improvement project. Wirosari uses the Earned Value Concept method. This method is used to measure project performance by comparing the value of the results achieved (Earned Value) with the planned value (Planned Value) and target value (Budgeted Cost of Work Performed) from week 1 to week 16 using the Concept Earned Value or EVM (Earned Value Method). From the results of this research, the performance of project implementation costs or calculations is knownCost Performance Index (CPI) Whichcut offweek 16 of 34 weeks in the period 6 to 12 May 2024 was 1.156 and there was no CPI value 1 with Cost Variation (CV) week 16 amounting to IDR 589,440,708.64, so that if the project implementation performance in the weekly reporting remains the same until the project is completed, the estimated costs required to complete the remaining project work orEstimate To Complete (ETC) amounting to IDR 1,294,766,228.89 so that the total estimated project costs required to complete the project work orEstimate At Completion (EAC) is IDR 5,075,881,759.65 and the estimated profit obtained from the project or Variance At Completion (VAC) is IDR 791,424,240.35

Earned value is a project management tool that provides significant managerial benefits by identifying project deliverables, tying these outputs to specific group or individual responsibility, and tracking performance over time. A less obvious benefit of earned value is that it can provide the justification for claims related to cost adjustments and scope changes. Most important, if the claim cannot be resolved and legal remedies are pursued, earned value methods are consistent with key legal standards for substantiating cost claims. This article presents a case study of the cost system that was used by a contractor who eventually initiated legal claims against the government for alleged scope changes and related cost increases. It demonstrates the relationship between the legal requirements for cost claims and the capabilities of earned value methods. Finally, it contrasts the deficiencies of the methods used by the contractor with good practice in cost estimation and the earned value method.

Implementing an efficient performance monitoring system is necessary to complete a facility building project on time, on budget, and by established standards and specifications. Inappropriate system monitoring process could lead to project failures such as delay which commonly occurs. If the delay happens, it is necessary to accelerate work productivity to overcome it. Earned value method (EVM) is one of the suggested global standards for measuring project performance. It effectively combines scope, cost, and schedule metrics and can provide a clear picture of the state of the project as of the control date. It also predicts the time prolong and completion budget. This paper proposes a guideline to implement EVM as a decision baseline on acceleration solutions for construction project scheduling by conducting an article review, since the EVM can predict the project’s time estimates at completion (TE). According to the guideline, when arranging network planning based on construction actual work performed, it is essential to use TE as the completion time. From the critical activities in network planning, contractors can conduct the acceleration process such as additional work hours (overtime) and additional manpower. This acceleration scenario later could be implemented in the project as the solution to overcome the delay.

Effective project management is the key to success in constructing the boarding school of SMA Muhammadiyah 3 Tulangan. Despite facing various challenges such as design changes, inclement weather, and limited workforce resources, the project is monitored using the Earned Value Method. Analysis of BCWS, BCWP, ACWP, SV, CV, SPI, and CPI indicates initial delays and budget overruns, but significant improvement later on. Despite weekly cost variations, the project remains financially manageable. The conclusion shows time delays but cost performance is under control. This underscores the importance of project performance evaluation and the use of the Earned Value Method in construction projects.

The implementation of construction work has the main targets in construction management, such as construction costs, quality of construction work and construction implementation time. Construction activities can be declared successful in their management if they produce work products with the quality criteria that have been determined, on time, and according to the agreed costs. Using EVM (Earned Value Method) in project management can be used to determine cost performance and implementation time during the project and the indicators used for analysis include: BCWP (Budget Cost of Work Performance), BCWS (Budget Cost of Work Schedule), ACWP (Actual Cost of Work Performance), SV (Schedule Variance), CV (Cost Variance), SPI (Schedule Performance Index), CPI (Cost Performance Index), EAS (Estimated At Schedule) and ETS (Estimated Temporary Schedule).By using this method in the Sports Facilities Construction Project, Kecamatan Kedewan, Kabupaten Bojonegoro, the ACWP (Actual Cost of Work Performed), BCWP (Budgeted Cost of Work Performed), and BCWS (Budgeted Cost of Scheduled) values were obtained. The CV value obtained <0 in weeks 1 to 7 indicates that the costs incurred were greater than the plan, but in weeks 8 to 15 the CV value >0 means that in that week the costs incurred were less than the plan. Meanwhile, the SV value for the 15th week is SV<0, meaning the project is experiencing a delay from plan. The estimated of the completion budget requirement obtained from the ETC (Estimate to Compile) value is IDR. 3,345,105,521.28, while the estimated final total project cost obtained from the EAC (Estimate at Complete) value is IDR. 5,680,868,593.22. The results of the TE (Time Estimate) value in week 15 show 33 calendar days, so it takes 243 (Two hundred and forty three) calendar days to complete the project from week 15 to completion or 33 days later than the contract time of 210 calendar days.

The main objectives in managing construction work involve controlling costs, ensuring quality, and meeting project deadlines. Construction projects are regarded as successful when they deliver outputs that satisfy predefined quality standards, are finished on time, and stay within the agreed budget. The Earned Value Method (EVM) is a valuable technique in project management for assessing both cost efficiency and schedule adherence throughout the project’s duration. Important indicators for this analysis include BCWP (Budgeted Cost of Work Performed), BCWS (Budgeted Cost of Work Scheduled), ACWP (Actual Cost of Work Performed), Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), Cost Performance Index (CPI), Estimated At Schedule (EAS), and Estimated Temporary Schedule (ETS). This research focuses on evaluating the performance of the Sports Hall Building construction project at Gunung Kidul Campus by applying the earned value method. The assessment emphasizes time scheduling and cost management to gauge how well the project progresses relative to its planned schedule and budget. The study’s findings reveal the current condition of both cost and schedule aspects of the Sports Hall Building project at Gunungkidul Campus, Universitas Negeri Yogyakarta. The data showed a positive cost variance, indicating that the project’s actual expenditures were less than originally planned.

Control in a construction project generally involves three main aspects, namely: cost, time and human resources. This study uses Network Planning analysis as a control function with the Critical Path Method (CPM) method in calculating the difference in cost and time needed to complete the work with a planned budget and schedule. This study also tried to implement an integrated control function, namely the Earned Value Method for a construction project. Based on the analysis and calculation in the 8th week (eight) of the total duration of the project, the analysis produces CPI value = 1.06 which shows that the performance of contractor's expenditure costs is more efficient than the planned budget. The description of the final condition of the project also shows that there is a residual budget value of Rp 321,642,608.01 or 5.55% of the total value of the overall project cost budget or Budgeted At Completion (BAC) which is an advantage for the contractor. The analysis also produces SPI value = 0.94 which means that the time performance index is of good value but the execution of the work is a little slower than the overall planned schedule.

Systems Engineering Management (SEM) is being developed hand in hand with the maturation of systems engineering, emphasizing the management of the joint project‐product ensemble.Most SEM applications use traditional Project Management (PM) methods and tools, including Gantt chart, PERT, Critical Path Method, System Dynamics, Earned Value Method, and Design Structure Matrix. Object Process Methodology has also been recently studied as a vehicle for Project‐Product Lifecycle Management. We examine how systems engineers perceive the extent to which PM methods support SEM. We verified that project and product are viewed as two complementary facets of SEM, and that certain PM methods address both domains better than others with respect to particular examined factors.

The development of road or toll road infrastructure in a country can be used as a benchmark to determine the level of economic progress of a country, both macro and micro. The location of toll exits has a significant effect in absorbing labor and creating new business activities. Projects are dynamic, so contractors must be responsive to changes in situations and conditions on the project, if they want to succeed in reaping optimum profits. Aspects of planning a highly competitive construction at this time are very demanding on accuracy, effectiveness, efficiency, and economy in analyzing a project. In the world of construction projects, there are many things that can be done, one of which is cost control. In controlling costs, efforts can be made so that the realization of costs that occur is in accordance with the needs of implementation and is not excessive, such as cost suppression efforts, namely making savings without reducing quantity or quality. The Earned Value Method is used to determine project performance in terms of costs at one time, determine project performance in terms of schedule/time at one time, estimate costs to complete the project after the evaluation time and estimate the time to complete the project after the evaluation. In this research the author carried out a cost analysis using the Earned Value Method on the preservation of the Section 5 Pandaan Malang Toll Exit Road.

In order to support Laga-Bauguia trade activities, the Ministry of Public Works (PU) is building a road network to the southern region. In its development, there is the development of the Laga-Bauguia Access Road which will be implemented from February 2023 to February 2025. This highway is one of the most important highways because it will connect the north coast area and cross the hills to the Matabian Mountains area which is visited by many tourists. local and foreign. This research aims to analyze the performance of the Laga - Bauguia Highway improvement project in terms of costs and analyze the estimated costs for the remaining work, as well as the cost of completing the Laga - Bauguia Highway improvement project. Every construction project requires control measures in terms of costs, where in carrying out control it is necessary to know in advance the ongoing project performance. One way to determine the cost performance of the project is the Earned Value method. This method can reveal whether the progress in implementing project work is commensurate with the use of part of the budget. By analyzing the concept of Earned Value, the relationship between what has actually been achieved physically and the amount of budget that has been spent can be seen. During the review period in the 8th month, a CPI value of 5.50 was obtained, which means that the actual costs incurred were less than the budget costs. In the 13th month, the CPI value was obtained at 5.50, which means the actual costs incurred were smaller than the budgeted costs.

Purpose – The purpose of this paper is to characterize the relationships between air pollutant emissions from heavy duty diesel equipment and highway construction project scope, schedule, and budget. Objectives included estimating total project emissions; developing a daily emissions profile; and developing new emissions estimating metrics based on project scope, schedule, and budget. Design/methodology/approach – The research approach involved collecting real-world data related to project scope, schedule, and budget from two highway case study projects. The data were used to establish an emissions inventory estimating methodology to calculate total emissions for each case study. The total emissions were normalized based on project size, duration, and cost in order to develop new emissions estimating metrics. Findings – The results proved that it is possible to characterize total equipment emissions based on project size, duration, and cost. The new emissions estimating metrics were quantitatively similar for both case studies. Research limitations/implications – The results were based on two case study projects. Additional data from more projects is needed to provide more highly refined numerical results. Practical implications – This approach enables project planners and managers to assess the environmental impacts of highway projects along with the financial and time impacts. Social implications – Construction equipment is a major contributor to the nation’s air pollution problem. Before pollutant emissions can be managed they must first be measured. Originality/value – The new emissions estimating metrics are a novel approach to comparing environmental impacts of two or more projects, as well as estimating total emissions for future highway construction projects.