Earned Value Management for China AP1000/CAP1400 Nuclear Power Plant Construction Projects

Abstract

As the clouds of the Fukushima disaster gradually fade, many countries have recently restarted nuclear power projects and mostly adopted advanced nuclear technology such as Generation III or III plus. It is anticipated that there will be severer competition in the nuclear industry because of the high expectations of the owners on the reduction of both cost and time for nuclear power plant construction. In order to improve project performance and strengthen competitive advantages, Earned Value Management (EVM) as an advanced and effective project management methodology by integrating control of cost and schedule, is of great concern by nuclear practitioners all over the world. Ever since the 1970s when Chinese government made decision to initiate nuclear power development, significant achievements have been made in Generation II and II plus nuclear power plant projects, referring to engineering design, equipment fabrication, site construction, and commercial operation. However, modern project management concept and methodology were not widely adopted and applied yet. Along with the introduction of Generation III nuclear technology-AP1000 in 2007, mature project management techniques and tools have been systematically applied to China AP1000/CAP1400 nuclear power plant construction projects, such as EVM. This paper aims to demonstrate the practice of EVM in China AP1000/CAP1400 nuclear power plant construction projects from an EPC contractor’s perspective and how EVM helps to analyze and exhibit project performance and variance both in scope, cost, and time compared with baseline, and take corrective or preventative actions accordingly to ensure project cost underrun and schedule on time.