Project control and forecast assessment of building projects in Pakistan using earned value management

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Project control and forecast assessment of building projects in Pakistan using earned value management

Authors
Type
Published Article
Journal
Engineering, Construction and Architectural Management
Publisher
Emerald
Publication Date
Mar 28, 2021
Accepted Date
Mar 28, 2021
Volume
ahead-of-print
Issue
ahead-of-print
Identifiers
DOI: 10.1108/ecam-11-2020-0989
Source
MyScienceWork
License
Green

Abstract

Purpose-Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction industry; where conventional progress reporting methodology (CPRM) is being followed having certain confines. It reports only the financial progress of a project, expresses feeble association between the duration and cost of activities, and forecasts flawed schedule and completion cost. This research implements EVM on under-construction building projects in Pakistan, and compares its upshots with the projects' actual records and with the outcomes of CPRM. Design/methodology/approach-To assess the implementation of EVM on building projects, a set of specific criteria was established. Work Breakdown Structure, Organization Breakdown Structure and Control Points were established. The study has compared the EVM metrics with CPRM outcomes on three understudy building projects, and has deliberated on their mutual differences as well as their relationship with actual cost and schedule performance. Monthly figures of actual spending and completed activities were periodically recorded and compared with planned values for status indication. The graphs were generated to observe the correlation between the results of EVM and CPRM. The data was then extrapolated to forecast the schedule and cost values at completion. Findings-The study discovered that trends of EVM in quantifying the project's cost and schedule performance were strongly correlated and were closer to the actual progress. It has also verified the EVM's Project control and forecast assessment soundness in forecasting the cost and schedule, required for project's completion. Contrarily, CPRM metrics could not precisely visualize the current and future, cost and schedule performance. Originality/value-The case study concludes that EVM's incorporation in progress reporting regime can revolutionize the assessment procedures in Pakistan by rightly indicating the project's current status as well as visualizing the future performance. The study's methodology can also be extrapolated in other countries having similar work environment and economic conditions.

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