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Measuring Construction Progress With EVM, Is It Enough

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24 views

Measuring Construction Progress With EVM, Is It Enough

Uploaded by

yamanta_raj
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Planning Engineer FZE Project Management & Planning Services and Training

‫بالنينغ إنجينير م م ح‬ ‫خدمات وتدريب إدارة المشروعات والتخطيط‬

Measuring Construction progress with EVM, is it enough?

A. Earned Value Management (EVM)


It is very common in construction progress measurement. However, does it give
accurate information about the progress? Let us see the following example of
measuring the progress using the EVM:

In the above picture we have a project with a value of 9,772,453, the earned value
so far according to the progress is 6,678 which represents 0.07 %

B. Working hours
Now, if we changed the measuring reference from money to working hours, does it
make a difference? See the photo below where we replaced the rate (money) with
the productivity rate (working hours per unit) and accordingly, the amount was
replaced by hours.

In the above picture, we have a project with a budget hours 120,000 the earned
hours so far according to the progress is 127 which represents 0.11 %

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Page 1 of 4
Planning Engineer FZE Project Management & Planning Services and Training
‫بالنينغ إنجينير م م ح‬ ‫خدمات وتدريب إدارة المشروعات والتخطيط‬

Although, it is the same project with the same progress the planned % and actual % would
vary depending on the benchmark or the technique you use to measure the progress (EVM
or HRS).
Here is another sample of construction project update with the two criteria mentioned
above showing different planned and actual

Which measurement criteria is correct?


In my opinion, you should use both in your reporting. Following is a table showing the
advantages and disadvantages of each progress measurement technique:

1. Measurement Technique
A. Earned Value Management (EVM)
• Advantages
· Easy to implement.
· Well understood by the clients.
· Project Budget Cost is known in the contract so no disputes about
the benchmark.
· Can be verified by comparing Earned Value to Payment Certificate
Value.

• Disadvantages
· Could result in misleading results if the project cost is upfronted
(contractor adds more money to the activities which will start early to
maintain cash flow).
· Could result in misleading results if there is an activity with a very
high value compared to other activities.

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+971 563 444 875
Publishing City Free Zone, Sharjah,
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Page 2 of 4
Planning Engineer FZE Project Management & Planning Services and Training
‫بالنينغ إنجينير م م ح‬ ‫خدمات وتدريب إدارة المشروعات والتخطيط‬

B. Man Hours (HRS)


• Advantages
· Gives accurate information about the project status based on the
required working hours and earned hours.
· The same data could be used to manage resources in the
construction site.
· Help the cost control department to monitor the project cost
performance.

• Disadvantages
· Requires accurate estimation of manpower required hours for each
activity.
· Since total hours are estimated by the contractor based on
company productivity rates, the client could argue about the
productivity rates/total working hours.

2. Conclusion:
What you cannot measure you cannot manage. Therefore, finding the proper
progress measurement technique should be the first step in any construction project
management. However, having EVM alone as a progress measurement system
would return misleading values. Therefore, I would recommend using both EVM and
Man Hours as progress measurement and reporting systems.

Business Centre, Sharjah


+971 563 444 875
Publishing City Free Zone, Sharjah,
[email protected] https://planningengineer.net/
Page 3 of 4
Planning Engineer FZE Project Management & Planning Services and Training
‫بالنينغ إنجينير م م ح‬ ‫خدمات وتدريب إدارة المشروعات والتخطيط‬

Article Link: https://planningengineer.net/measuring-construction-progress-with-evm-is-it-


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