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(EVM-1747) Effective Use of Earned Value for Controlling Construction Projects

Primary Author: Mr. Laurie Scott Bowman CCP DRMP EVP PSP and Mrs. Mina Sabouri PSP

Audience Focus: Intermediate
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: The effective management and control of construction performance is a key determinant in overall project success. It is in the interests of both the contractor and the owner to plan, measure, monitor and control construction progress so that:

1. Project managers are well informed of problems and opportunities early and are better informed to make decisions that have a positive impact on project and;
2. It is easier to identify delay, disruption and productivity problems and their root causes so they can be resolved quickly so that stakeholders’ goals are satisfied and the risks associated with dispute and litigation reduced.

Key aspects of construction performance management include setting a valid performance measurement baseline, systematic performance updates, controlling scope change and regularly working closely with the project team to optimize forecasts to complete the remaining scope of work. By setting up the project well and systematically employing effective processes for measuring progress, assessing risks, controlling scope changes and forecasting you can reduce cost risks and increase the likelihood of project success.