Abstract:
Earned Value Management (EVM) developed in the 1960s is a technique used in monitoring the
performance of ongoing projects. Performance Measurement Baseline (PMB) is setup at the start
of the project and time and cost deviations in project performance are measured with reference to
the PMB. Based on the current progress of the project, the estimated cost at completion is
estimated.
Project Risk Management (PRM) deals with the risks that may alter the project’s objectives
which are mainly cost, time, quality and scope. Construction industry has lots of uncertainties so
PRM has been identified as one of the most crucial techniques to accomplish project objectives.
EVM only focuses on the project schedule (Schedule Performance Index) and cost (Cost
Performance Index), and does not address other important aspects such as quality, safety, risk,
customer satisfaction, etc. Introducing performance indices to measure other key aspects of the
project will give the stakeholders a better monitoring and decision making capability.
In order to estimate better EAC using EVM, a framework is developed that interconnects these
various performance indices and uses their results to estimate project EAC. Also, critical success
factors (CSFs) are identified for construction projects and a framework for their monitoring is
established. Forecasting a better EAC during the construction period is achieved and validated
using case studies.
