Simplified Earned Value Analysis Method for Highway Construction Projects

Abstract

Earned value (EV) methodology has been widely studied and implemented in academia and industry. Nonetheless, state departments of transportation (DOTs) are lagging in their acceptance and utilization of EV techniques to measure progress and assess performance for highway construction projects. Difficulty securing cost progress data and other information, such as a cost and resource-loaded schedule, necessary to generate EV metrics, is one of several reasons. This paper suggests DOTs adopt the simplified earned value analysis (SEVA) method, which uses project contract information and project progress payment data to calculate EV metrics. The SEVA method is proposed as an intermediate approach for DOTs to apply the EV concept without the burden of additional data collection. The study also addressed front-loading and auxiliary item costs and their impact on measuring project progress. By removing the costs of front-loading and auxiliary items, for example, mobilization and preparing right-of-way, from metrics calculations, the SEVA method provided a more accurate picture of project progress and performance. The SEVA method is also expected to help DOTs move toward wider earned value management implementation in highway construction. This study contributes to the academic body of knowledge by exploring little-studied challenges to EV application and their practical solutions in highway construction, and by introducing potential future research avenues in EV implementation in highway construction.