IMPLEMENTING CONTROLLED EARNED VALUE MANAGEMENT TECHNIQUES IN CONSTRUCTION

Abstract

The Earned Value Method is crucial for project forecasting because it provides an integrated approach to measuring cost, schedule, and performance which enables project managers in early identifying the deviations in the projects. Therefore, the study aimed to explore the role of earned value methodology in the construction projects of private and public sector buildings. For this purpose, the case study approach and quantitative data collected were analyzed on the cost performance index, schedule performance index, and cost variance percentage. The Project One public sector university building construction results indicated that the cost performance index was lower than 1 which indicated that there was no proper implementation of the earned value method in the cost forecasting. On the other hand, in project two which was conducted on the construction of a private university building, the cost performance index was greater than 1 which showed the importance of the earned value method in controlling the cost. The cost variance percentage of Project One was found negative while Project two cost variance percentage was also positive which also showed the proper implementation of the earned value method in their construction. The study with results highlighted the crucial role of the Earned Value Method EVM in cost control and forecasting which demonstrates that its proper implementation leads to better financial performance in construction projects. The comparison between public and private sector projects emphasizes the need for stricter EVM adoption in public-sector construction to improve cost efficiency.