Application of the Randomized Earned Value Method to assess the advancement of the construction of the office building under the unstable implementation conditions

Abstract

The REVM method is a modernized option of classical EVM method. The new method has been developed for applying in unstable condition of works implementation. When the works can be accidentally disturbed and the impact of random disruption factors on course and results of works must be taken into consideration. Next, Randomized Budgeted Duration to Completion and Randomized Budgeted Cost to Completion that is duration and cost of works remaining to execution after each inspection, as well as the Randomized Budgeted Duration at Completion and Randomized Budgeted Cost at Completion that is duration and cost of all works of the project completion after the site inspection. Moreover, the risk of durations and costs overrun of works are evaluated. It is important that input data required for the REVM method are the similar and are measured in the same way as in typical control of advancement works. But results of the application consist new decision information. Control of the investment under deterministic conditions, without taking into account the risk of disruptions, resulted in a final deviation from the planned budget of over 7%, and from the planned completion of the investment by almost 12%. Without analysing the factor related to disruptions at the investment implementation stage, the material and financial schedule was completely outdated. On the other hand, when controlling the investment under risk conditions and introducing organizational and technological changes adequate to the inspection reports, the final deviation from the planned budget was less than 2%, and slightly more than 2% from the planned completion date. Researches confirm that the results received by using the REVM method well reflect real situation of works implementation.

Keywords

• construction investment
• duration
• cost
• risk
• randomization
• project management