THE INTEGRATION BETWEEN EARNED VALUE MANAGEMENT AND RISK MANAGEMENT IN CONSTRUCTION PROJECTS

Abstract

The success criterion of a project is to achieve the project objectives and scope of work within the dedicated budget, targeted time and quality requirements. Various techniques have been developed to monitor, control and evaluates the project cost and time performance. One of these widespread techniques is the Earned Value Management technique which effectively measures the project performance to date in the terms of cost and time. On the other hand, the Risk Management technique is dedicated to address any future threats or opportunities. Using each of the EVM and RM techniques without a systematic integration and synchonosization of the data extracted from both techniques may mislead the project parties in the terms of establishing the project measurement baseline, change management and the forecasting and decision making processes. Hence, the need for a systematic integration between EVM and RM was developed especially in the current crucial world wide economical circumstances. The literature review was divided into Earned Value Management, Risk Management and the integration process between both techniques, the methodology proposed a systematic steps for the integration technique starting by establishing the project total budget, integrated baseline change management, forecasting and decision making.