The Application of Improved Earned Value Method in Highway Construction Cost Management

Abstract

Highway is an important transportation infrastructure in the country. Through analysing the composition and classification of the highway construction cost,it illustrates the content of highway construction cost management. The content of highway construction cost management includes cost forecast, cost decision, cost plan, cost control, cost accounting, cost analysis, cost assessment. In order to introduce the earned value method to the highway construction cost management, the parameter and the evaluation index of the earned value method are analyzed. Earned value method contains three parameters, including budgeted cost of work scheduled, budgeted cost of work performed and actual cost of work performed. In order to apply earned value method in highway construction cost management, it needs to improve the earned value method. The improved earned value method is an improvement on the current earned value method, which is based on the consideration of the quality of the factor. It takes into account the quality level of the highway construction cost, the progress of the impact. It can solve the problem of the reality of the highway construction cost control. The improved earned value method can be used to quantify the impact of quality on cost. It can monitor the quality, cost and progress of the highway construction project. It can truly achieve the maximum profit of construction enterprises.