Using Earned Value Methods to Substantiate Change-of-Scope Claims

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

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.

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.

The earned value method (EVM) is an internationally known technique for project management that emphasizes the control of project cost performance and duration, thus allowing trends to be identified during execution and warning the project manager of variances that may affect the project so that they can take the necessary corrective measures. In this research, the finished projects of a construction company in the city of Cuenca, Ecuador, were assessed. EVM was applied to projects from a database developed with information from each one to rebuild past events, existing problems, and critical points and evaluate the performance over time. The results of this analysis are meant to determine the project’s success, calculating the cost variance at the end. EVM motivates project stakeholders to pay attention to costs and progress so that timely actions can be taken to optimize resources, resulting in the completion of a project within budget and on time. In conclusion, EVM plays an essential role in the integral management of the project in terms of scope, time, and cost. Moreover, there are now guidelines for applying this method as a control tool in future construction projects.

A cut and fill earthworks management system was developed based on 4D CAD and earned value method. The system is composed of a schedule management system, 4D CAD system, cost estimation system, and earned value management system (EVMS). LandXML was employed as the product model to represent terrain data, and IFC was used to represent the process model. We applied the system to a past actual earthworks project and demonstrated that it could facilitate enhancing the control and management of cost and schedule of construction works as well as incorporating the progress payment method effectively.

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.

Impact of sensitivity information on the prediction of project's duration using earned schedule method

Delays in completing the project are things that must be avoided, because in addition to adversely affecting the credibility of the contractor, it also causes losses in terms of project time and cost or cost overrun, where the work done is not in accordance with the planned time and the cost is not in accordance with the budgeted so that it requires additional costs to complete the project. The Earned Value method is a method used to manage project costs and schedules in a structured manner. This method can provide information on the status of project performance in a review period and information on predicted costs and time for completion of all work based on performance indicators at the time of review. Project performance on ship repair TB. Big Fair 15 from the calculation of CV and SV in reviews 1, 2 and 3 is negative and so is the calculation of CPI and SPI in reviews 1, 2 and 3 is negative or less than 1. This indicates that the cost used to complete the project is greater than the plan. However, for the 4th review, the results of the CV and SV calculations show a positive value, which means that the cost of completing the project is in accordance with the plan as well as the CPI and SPI at the 4th review show a positive value, which means that the cost of completing the project is in accordance with the plan. Based on the analysis that has been done, the time required to complete the remaining work is 10 days and in this ship repair project there is a cost overrun of Rp. 107,332,706 with a cost budget of Rp. 459,273,994. After a review using Earned Value Analysis, the results are obtained for each review, where review 1 weighs 12.93% at a cost of Rp. 73,267,561 and review 2 weighs 45.17% at a cost of Rp. 255,915,724 and review 3 weighs 26.58% at a cost of Rp. 86,839,784.

Project delays are caused by lack of good control, which affects the time and cost of completion, in determining and knowing the time performance and cost performance of the SP. Armed-Rumah Great Road Construction Project, Biru-Biru District, Deli Serdang Regency. Using the Earned Value method. Based on the results, the results of the time performance from month 1 to month 3 of the project experienced delays, this is indicated by the Schedule Variant (SV) indicator which has a negative value of Rp. - 356,103,446.04 or Schedule Performance Index (SPI) = 0.828 <1. In the 4th month it was faster than the planned schedule, this is indicated by the Schedule Variant (SV) indicator which has a positive value of Rp. 96,183,088.74 or Schedule Performance Index (SPI) = 1.019>1. And in the 5th and 6th months the schedule performance index (SPI) value shows a value of 1 which means that the construction project work is in accordance. Meanwhile, for cost performance from month 1 to month 3, it incurred smaller costs than planned, this is indicated by the negative Cost Variance (CV) indicator of Rp. -150,413,906.18 or Cost Performance Index (CPI) = 0.920 <1. In month 4 to month 6, the Cost Variance CV value is above the X axis with a positive value of Rp. 829,560,555.98 or Cost Performance Index (CPI) = 1.110 >1 due to the addition of labor and additional working hours in project implementation.

In the implementation of construction projects requires a good management in order to realize the success of the project being implemented. Cost accuracy, time and quality are very influential on the success of a project. Among the factors that are considered are the cost factor and the time factor. From these two aspects, project control can be carried out using the earned value method. The object of this research was carried out on the Kedungwuni Police Office Building Project located in Kedungwuni District, Pekalongan Regency which aims to determine the value of cost variations, schedule variations, cost performance index, schedule performance index, estimated remaining work time, estimated costs for remaining work, estimated total project time and estimated total project cost. This study uses data from week 1 to week 15 with a total work duration of 21 weeks. From the results of the analysis using the earned value method for the 1st to 15th period, the cost variance value did not find a negative value. Then the schedule variance value has a negative value in the 1st to 3rd week and a positive value in the 4th to 15th week. The cost performance index value is not found <1 but in the 1st to 2nd week the CPI value is 0 and the SPI value has a value of <1 in the 1st to 3rd period and has a value of >1 in the 4th to 15th period. After that, the estimated total cost is Rp. 2,453,103,5841.00 with an estimated total processing time of 6 weeks. Keywords: Cost, Time, and Earned Value

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.

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.

This research aims to analyze the relationship of delay time and costs with estimated that causes increased costs from perspective of management fees project with earned value method and to analyze the influence of the variables associated with the quality control at each stage of the work concreting. Secondary data collection i.e. the draft budget, the curve S, financing and weekly reports the progress of the project. Primary data i.e. questionnaires to 30 respondents. The cost control and time used earned value methods, and quality control with multiple linear regression. The results of the research project performance until the 27th week of aspects of cost and time projects implementation are not experiencing excess costs, but suffered delays. Regression analysis a very influential determinant variables of each job of making concrete to install formwork: concrete level marking and dimensions for formwork, ironing: the connection reinforcement iron and iron a clean free from rust, oil, and dry concrete, for concreting: checking of slump test and the amount of labor, and to uninstall the formwork: concrete age and concrete level according to plan.

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.