Project control and forecast assessment of building projects in Pakistan using earned value management
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 25 March 2021
Issue publication date: 8 March 2022
Abstract
Purpose
Earned Value Management (EVM) is widely used as a project performance measurement and forecasting technique. Nonetheless, it has not been fully explored in Pakistani construction industry; where conventional progress reporting methodology (CPRM) is being followed having certain confines. It reports only the financial progress of a project, expresses feeble association between the duration and cost of activities, and forecasts flawed schedule and completion cost. This research implements EVM on under-construction building projects in Pakistan, and compares its upshots with the projects' actual records and with the outcomes of CPRM.
Design/methodology/approach
To assess the implementation of EVM on building projects, a set of specific criteria was established. Work Breakdown Structure, Organization Breakdown Structure and Control Points were established. The study has compared the EVM metrics with CPRM outcomes on three under-study building projects, and has deliberated on their mutual differences as well as their relationship with actual cost and schedule performance. Monthly figures of actual spending and completed activities were periodically recorded and compared with planned values for status indication. The graphs were generated to observe the correlation between the results of EVM and CPRM. The data was then extrapolated to forecast the schedule and cost values at completion.
Findings
The study discovered that trends of EVM in quantifying the project's cost and schedule performance were strongly correlated and were closer to the actual progress. It has also verified the EVM's soundness in forecasting the cost and schedule, required for project's completion. Contrarily, CPRM metrics could not precisely visualize the current and future, cost and schedule performance.
Originality/value
The case study concludes that EVM's incorporation in progress reporting regime can revolutionize the assessment procedures in Pakistan by rightly indicating the project's current status as well as visualizing the future performance. The study's methodology can also be extrapolated in other countries having similar work environment and economic conditions.
Keywords
Acknowledgements
The authors extend special gratitude to the industrial experts who responded to the data collection and contributed with their valued input. The financial support provided by National University of Sciences and Technology (NUST), Risalpur Campus, Pakistan, is gratefully acknowledged. Lastly, reviewers' support in refining the manuscript through their valuable comments is also appreciated.Conflicts of Interest: The authors declare that they have no conflict of interest in this article.
Citation
Zahoor, H., Khan, R.M., Nawaz, A., Ayaz, M. and Maqsoom, A. (2022), "Project control and forecast assessment of building projects in Pakistan using earned value management", Engineering, Construction and Architectural Management, Vol. 29 No. 2, pp. 842-869. https://doi.org/10.1108/ECAM-11-2020-0989
Publisher
:Emerald Publishing Limited
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