Monitoring of Time and Cost Variances of Schedule Using Simple Earned Value Method Indicators

Daniel Przywara,Adam Rak

doi:10.3390/app11041357

Daniel Przywara, Adam Rak

Open Access

https://doi.org/10.3390/app11041357

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Journal: Applied sciences	Publication Date: Feb 3, 2021
Citations: 13	License type: CC BY 4.0

Affiliation: Opole University of Technology

Abstract

The Planning and implementation of construction projects are difficult processes and are burdened with many risk elements. The budget spread over time, which is developed on the basis of the schedule, presents the expected distribution of costs throughout the duration of the works, which during the implementation of the project is subject to constant changes resulting from time, cost, and organizational factors. Managing construction contracts requires managers to be able to analyze on an ongoing basis the variances of production costs-from the values calculated in the offer cost estimate and assumed in the Budgeted Cost of Work Scheduled. The article attempts to analyze the emerging time and cost deviations using proprietary time variances from the schedule (T/S) and variances from planned costs (T/C) monitoring, based on simple indicators of the earned value method (EVM). An example of construction of a multi-family housing development was used to study the variances of planned and incurred costs.

Highlights

Monitoring of Time and CostThe growing number and growing importance of unique, often complex construction projects, results in unflagging interest in project management
Monitoring ofof variances arising the implementation of the works covered by the schedule, was divided into three scenarios of its implementation, accordT/S and to arising variances from planned costs (T/C) monitoring of variances arising during the implementation of the works ing to the methods adopted above
The role of additional tools of the earned value method (EVM) method-T/S and T/C monitoring is to take into account the financial liquidity of the project in the analysis of time and cost variances of the assumed schedule

Summary

Introduction

The growing number and growing importance of unique, often complex construction projects, results in unflagging interest in project management. More significant than ever, development of effective methods of planning, coordinating, and controlling, the increase in the complexity of operating conditions of the enterprise on the market means that success in project management is not easier. Construction production is characterized with significant seasonal fluctuations. They constitute a cycle of repetitive changes, in more or less equal periods of time, with similar intensity. Their identification and inclusion considerably increases the precision of predictions [1,2,3]

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Conclusion