Determining Cost and Time Performance Indexes for Diversified Investment Tasks

Abstract

The aim of the research results presented in the article was to develop a method that enables the analysis and evaluation of deviations at the stage of implementing a construction investment in various construction sectors. The new method was based on the well-known Earned Value Method (EVM). It was assumed that the monitoring of costs and the constant control of the implementation time of construction projects, with the simultaneous analysis of the level of deviations, allows for the consistent management of the investment task. Moreover, it ensures—in the required time—the adoption of appropriate improvement actions, and also enables the quantification of risk during the planning of an investment. The article attempts to prove the validity of the assumption about the necessity of the cyclical verification of the level of deviations in construction projects budget and schedule. Such an approach provides numerous perceptible benefits; such as the precise determination of the size of possible losses; an immediate reaction to risk; and the possibility of making changes at every stage of implementing an investment. On the basis of the analysis of the author’s own research carried out in three research groups of facilities (collective housing; hotels; and commercial and service facilities), an original attempt was made to determine the size of cost and time performance indexes of various investment tasks. The values of these performance indexes were determined, and are presented as quantile images in boxplots.

Keywords

• investment task
• Earned Value Method
• cost performance index
• time performance index