Earned value for construction contracts
|
Earned value analysis (EVA), also known as earned value management (EVM), is a technique used to assess project progress by comparing the amount and cost of work that was planned to have been done by a particular stage with the amount that has actually been done and what it has actually cost.
This gives a good indication of how the project is progressing compared to what was planned and enables forecasts to be made about the eventual cost and time that will be required to complete the project.
Typically, EVA is carried out for each of the packages that make up the project. Actual outputs are measured against planned outputs (often on a weekly basis) using the units that individual companies use to price and measure work.
This provides an opportunity to investigate discrepancies and take remedial action where necessary. It also provides a fairly accurate insight into the financial wellbeing of package contractors and provides early warning of a shortage of resources or of an inefficient use of resources.
The key is to measure actual resource against planned resource using the production units by which estimates have been produced in order to price a tender. This can be:
- Hours worked per week.
- Number of workers per week.
- Volume of say, concrete per week per person.
- Units fixed per week per person.
These items can be plotted weekly to alert the user to trends and allow them to investigate causes. Furthermore, it provides an overall general picture of labour productivity for each monitored operation.
Carrying out this sort of analysis requires that project planning is broken down into packages and that tender documentation is drafted to require contractors to supply the information required.
[edit] Related articles on Designing Buildings Wiki
- Benchmarking.
- Contractor.
- Cost monitoring.
- Cost performance index (CPI).
- Identifying the causes of trends in construction labour productivity.
- Key performance indicators.
- Programme consultant.
- Progress of construction works.
- Schedule performance index (SPI).
- Sub-contractor.
- Tender.
- Tender documentation.
[edit] External references
Featured articles and news
We're expanding our collaborative mission by launching DB Intelligence, an exclusive market research advisory panel. Built environment professionals can now get paid to share their expertise on industry trends, products and services.
Panel members receive direct financial incentives for participating in research projects like short surveys, 1-2-1 interviews and focus groups. Register today to shape the future of the construction sector.
Planning condition discharge in England and Wales
A brief exoplanation from a building compliance expert, with further links.
Overheating guidance and tools for building designers
Guidance for dealing with element of building fabric control that have increasing importance.
Shading for housing, a design guide
From the Good Homes Alliance and British Blind and Shutter Association.
UK Standard Skills Classification (SSC)
A shared framework for describing skills needs.
Social media ban consultation comes to close
CIOB urges UK Government to consider social media’s role in careers guidance in ban debate.
The latest of eight Skills England apprenticeship units
The addition of battery manufacturing welcomed by ECA with a warning about the risks of fast-tracked apprenticeship units.
Building Control Independent Panel final report
A precis of a key report led by Dame Hackitt with full recommendations and link to the government response.
Building Safety recap April, 2026
A short and longer run-through of the month, with links to further information and sources.
CIAT May 2026 briefing.
From medieval scribes to modern word art.
ECA welcomes crackdown on late payment and push for clean energy, whilst CIOB seek fixed cladding removal timeframes.
Cyber Security in the Built Environment
Protecting projects, data, and digital assets: A CIOB Academy TIS.
Managing competence in the built environment
ITFG publishes new industry guide on how to meet the ICC principles.
The UK's campaign to reduce noise pollution: Mythbusting, articles and topic guides.