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Earned value‐based performance monitoring of facility construction projects

Earned value‐based performance monitoring of facility construction projects Purpose – The purpose of this paper is to contribute to the diffusion of earned value management (EVM) as a practicable methodology to monitor facility construction and renovation projects in the context of the European industry. Design/methodology/approach – First, a review of the literature reveals how EVM evolved as a tool for facility construction project monitoring together with specific concerns for its application. Then, a review of EVM practice and trends in Europe is provided and finally, applicability and viability of the method is proved through a case demonstration. Findings – EVM practice in the European construction industry is found to be lagging behind other experienced countries and industries, despite EVM having been found to be applicable, adaptable, and predictive of integrated final cost and schedule of facility construction projects. In particular, cost estimate at completion is forecasted by a simple cost performance index (CPI), while for the time estimate at completion, the earned schedule concept is revealed as an accurate predictor. Research limitations/implications – The paper urges the need for research of a European standard as a primary factor for successful diffusion of EVM usage in architecture, engineering and construction projects. Practical implications – This paper helps practitioners to understand the adaptability of EVM practice in the European construction industry and to apply EV tools for effective monitoring of the performance of their projects. Originality/value – Current trends of EVM practice in the European construction context are presented and suggestions for sustaining the diffusion of EVM are given. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Facilities Management Emerald Publishing

Earned value‐based performance monitoring of facility construction projects

Journal of Facilities Management , Volume 11 (1): 12 – Feb 15, 2013

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1472-5967
DOI
10.1108/14725961311301475
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to contribute to the diffusion of earned value management (EVM) as a practicable methodology to monitor facility construction and renovation projects in the context of the European industry. Design/methodology/approach – First, a review of the literature reveals how EVM evolved as a tool for facility construction project monitoring together with specific concerns for its application. Then, a review of EVM practice and trends in Europe is provided and finally, applicability and viability of the method is proved through a case demonstration. Findings – EVM practice in the European construction industry is found to be lagging behind other experienced countries and industries, despite EVM having been found to be applicable, adaptable, and predictive of integrated final cost and schedule of facility construction projects. In particular, cost estimate at completion is forecasted by a simple cost performance index (CPI), while for the time estimate at completion, the earned schedule concept is revealed as an accurate predictor. Research limitations/implications – The paper urges the need for research of a European standard as a primary factor for successful diffusion of EVM usage in architecture, engineering and construction projects. Practical implications – This paper helps practitioners to understand the adaptability of EVM practice in the European construction industry and to apply EV tools for effective monitoring of the performance of their projects. Originality/value – Current trends of EVM practice in the European construction context are presented and suggestions for sustaining the diffusion of EVM are given.

Journal

Journal of Facilities ManagementEmerald Publishing

Published: Feb 15, 2013

Keywords: Europe; Construction industry; Project management; Construction management; Earned value; Cost control; Industrial facility; Monitoring; Performance

References