Difficulties of Implementing Earned Value Management in Construction Sector in Egypt

Abstract

Earned value project management (EVM) is a known system for project management that allows the integration between cost, schedule and technical performance. By using EVM cost and schedule variances, performance indices, forecasts of project cost and duration can be calculated. Recently EVM is being criticized due to its conceptual problems and implementation difficulties. During the construction phase, EVM implementation is facing some problems that may diminish the effectiveness of using earned value as a control technique. Besides, the accuracy of Earned Value Analysis (EVA) indicators may impede the correct implementation of EVM. The objective of this thesis is to identify and analyze factors behind the deficiencies of the (EVA) when applied to projects that are executed within the construction sector. The thesis presents an overview of how the EVA has been developed to become a performance tool and control technique for projects and how it can contribute to the users in comparison with the traditional cost method and finally EVA calculations are presented. Furthermore, this thesis examines the existing literature dealing with the reasons EVA fails to provide the desired outcome, Earned Value Analysis (EVA) is implemented on two different construction projects showing the effect of these difficulties on EVA results, the effect of using Earned Schedule and the effect of applying the revised-baseline. Analysis results are verified by comparing the results of cost and duration forecasting equations with the actual status of the projects and by implementing Building Information Modeling (BIM) on one case study to show its effect on EVM analysis.