Zahoor, H; Khan, R M; Nawaz, A; Ayaz, M and Maqsoom, A (2022) Project control and forecast assessment of building projects in Pakistan using earned value management. Engineering, Construction and Architectural Management, 29(2), pp. 842-869. ISSN 0969-9988
Abstract
Purpose: Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction industry; where conventional progress reporting methodology (CPRM) is being followed having certain confines. It reports only the financial progress of a project, expresses feeble association between the duration and cost of activities, and forecasts flawed schedule and completion cost. This research implements EVM on under-construction building projects in Pakistan, and compares its upshots with the projects' actual records and with the outcomes of CPRM. Design/methodology/approach: To assess the implementation of EVM on building projects, a set of specific criteria was established. Work Breakdown Structure, Organization Breakdown Structure and Control Points were established. The study has compared the EVM metrics with CPRM outcomes on three under-study building projects, and has deliberated on their mutual differences as well as their relationship with actual cost and schedule performance. Monthly figures of actual spending and completed activities were periodically recorded and compared with planned values for status indication. The graphs were generated to observe the correlation between the results of EVM and CPRM. The data was then extrapolated to forecast the schedule and cost values at completion. Findings: The study discovered that trends of EVM in quantifying the project's cost and schedule performance were strongly correlated and were closer to the actual progress. It has also verified the EVM's soundness in forecasting the cost and schedule, required for project's completion. Contrarily, CPRM metrics could not precisely visualize the current and future, cost and schedule performance. Originality/value: The case study concludes that EVM's incorporation in progress reporting regime can revolutionize the assessment procedures in Pakistan by rightly indicating the project's current status as well as visualizing the future performance. The study's methodology can also be extrapolated in other countries having similar work environment and economic conditions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | building projects; conventional progress reporting methodology; earned value management; forecasting schedule and cost; performance measurement |
| Index terms: | actual cost, schedule performance, earned value management, methodology, Pakistan, economic condition, case study, forecasting, performance measurement, planned value, work environment, project performance, project control, implementation, construction industry, duration |
| Subjects: | Geography, project management theory and practice, management, performance measurement, research methods, industry analysis, project controls, control systems, data collection methods, contractual arrangements, financial and cost management, economic analysis, prediction and forecasting |
| Topics: | Research Practice, Geographical Context, Project Management, Cost Management, Business Strategy, Procurement, Quality Management, Time Control, Organizational Design |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here