Leverage the unseen earned value management benefits in construction projects

Optimize project outcomes by implementing effective earned value management strategies in your construction projects.

Why must project teams leverage the unseen benefits of earned value management?


In recent years, the level of project and program complexity has been subjected to a steady rise, according to 67% of the project managers in a survey carried out by the Project Management Institute (PMI) in 2020. Backed by another study conducted by Wellingtone in 2020, it was revealed that 72% of PMOs were expected to have a growth in their scope and responsibilities by the year 2020 from the earlier 61% in 2019.
 
While navigating the construction industry is expected to be more challenging now and for years to come, project teams can still optimize their construction project outcomes by leveraging the unseen benefits of earned value management methodologies. Beyond the obvious earned value management benefits of cost control and performance measurement, this methodology offers a deeper level of insight and control to construction projects.
 
Through the combination of cost, schedule, and technical performance data, earned value management offers a comprehensive insight into project progression and performance, which allows project managers to identify problems in the early stages of the project and to come up with the appropriate resolution. By taking advantage of the unseen benefits that can be leveraged from utilizing earned value management, it can assist project teams in optimizing their project outcomes, enhance accountability in their work, and assist in proper decision-making.

The unseen earned value management benefits in construction projects

Real-time communication

Accurate forecasting

A major benefit of earned value management (EVM) is the possibility of measuring the costs and time necessary to complete a given project. By comparing project performance against the baseline plan, EVM enables the accurate prediction of the total project costs and time by its estimated completion time. It also helps project managers mitigate risks and allocate resources effectively.

Risk reduction

With EVM, it is easy to estimate the costs to complete a specific project and the time needed for it. By regularly measuring and analyzing project performance, EVM enables project teams to proactively address issues and deviations from the project plan. Identifying risks early can also minimize the negative impacts of cost overruns, delays, and scope changes on project outcomes.

Improved stakeholder communication

EVM can ease communication since it offers the stakeholders a clear picture of the cost, schedule, and performance of the scope involved. EVM metrics, such as Cost Performance Index (CPI) and Schedule Performance Index (SPI), enable stakeholders to understand the project's health at a glance. This fosters trust between project teams and stakeholders through accurate real-time updates.

Trend recognition

EVM helps in recognizing trends and predicting future performance based on those trends. By analyzing historical data and performance trends, project managers can anticipate potential challenges and proactively address them. This trend recognition enhances the project team's ability to make informed decisions and adapt to changing circumstances, improving the overall project outcomes.

Leverage EVM with Compass Consult

Project teams often aim to deliver optimized project outcomes, meet set deadlines, and stay within budget. However, they often fall short of these expectations.

Compass Consult is here to help you navigate these hurdles. Our team of experienced professionals specializes in teaching project teams how to leverage EVM. We also offer comprehensive support for the implementation of Primavera P6 project management software, provide expert consultations, and conduct training sessions.

Contact Compass Consult today to leverage our expertise in earned value management systems and enhance your project management capabilities.

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FAQs

FAQs

How does EVM help project teams stay within the allotted project budget?

EVM provides an early overview of the differences between the planned (baseline) cost and the actual cost at any stage of the project. This helps project managers identify cost overruns and implement corrective actions to readjust costs.

What are the key components of EVM?

The key components of EVM include planned value (PV), earned value (EV), and actual cost (AC). These components are used to calculate metrics such as cost performance index (CPI) and schedule performance index (SPI).

What are some unseen earned value management benefits in construction projects?

The benefits of leveraging EVM in construction projects include enhanced cost and schedule control, improved risk management, real-time visibility of centralized information, and better performance tracking and measurement, ultimately leading to optimized project outcomes.

Looking to unlock earned value management benefits in your construction projects? Contact Compass Consult today

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