Time and Cost Management in Water Resources Projects Utilizing the Earned Value Method

Abstract

Today, the development of infrastructure and construction projects in developing countries is of paramount importance. Water projects, in particular, play a crucial role in advancing agriculture, industry, and the economy. The success of these projects hinges on the effective management of time, cost, and quality. The most critical indicator of a project's success is its completion within the forecasted time and budget leading up to its operation. This study aims to assess the impact of Earned Value Management (EVM) 's impact on managing project schedules and budgets in water resource projects. The earned value method was employed to ascertain if the project was ahead or behind schedule and whether the costs were within the budget or had overrun. The values of the Earned Value Index were analyzed at three stages of project implementation. Examining the Schedule Variance (SV) at various phases indicates that a lower percentage is more advantageous for the project. Initially, the SV was 40%, signaling a delay mainly due to the delayed start of operations in the injection gallery and access points. This improved to 25% in the second stage, with the commencement of previously lagging activities. The schedule variance decreased to 11.6% in the final stage, aligning closer to the project schedule's end. Additionally, the Schedule Performance Index (SPI) value, which reflects the efficiency of project management in terms of timeliness, improved from a weak start of 0.6 to 0.88 (with 1.0 indicating that project performance is on target).

Keywords

• Earned value method
• Schedule Variance
• Cost Variance
• Estimate at Completion
• Water resource projects