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
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.