Earned Value Method (EVM) for Construction Projects: Current Application and Future Projections

Abstract

The earned value method (EVM) is an internationally known technique for project management that emphasizes the control of project cost performance and duration, thus allowing trends to be identified during execution and warning the project manager of variances that may affect the project so that they can take the necessary corrective measures. In this research, the finished projects of a construction company in the city of Cuenca, Ecuador, were assessed. EVM was applied to projects from a database developed with information from each one to rebuild past events, existing problems, and critical points and evaluate the performance over time. The results of this analysis are meant to determine the project’s success, calculating the cost variance at the end. EVM motivates project stakeholders to pay attention to costs and progress so that timely actions can be taken to optimize resources, resulting in the completion of a project within budget and on time. In conclusion, EVM plays an essential role in the integral management of the project in terms of scope, time, and cost. Moreover, there are now guidelines for applying this method as a control tool in future construction projects.

Keywords

• earned value management
• actual cost
• planned value
• EVM
• performance index
• earned value