Technical Program Abstracts

(EVM) Earned Value Management

NOTE: Program Subject to Change

(EVM-3155) Use of Earned Value Management as a Communication Tool With the Project Team and the Client

Author(s)/Presenters(s): Edward M. McNamee; Charles W. Immonen

Time/Room: TUE 10:15-11:15/Room 4


People often focus on the rigorous implementation of earned value management (EVM) without realizing the value the system offers as a communication tool between the project team and the client.  Proper implementation of an EVM system can lead to:

•             A clear understanding of the project requirements

•             A well-thought-out execution strategy by the project team

• Easier issue identification and resolution

•             A system for tracking and resolving management actions to move the project forward

•             Objective measurement of performance that can be used to communicate progress and issues with the client and other stakeholders

Taking a fresh look at the EVM guidelines from a communication perspective can enhance the return on investment for using EVM and improve project performance and relationships.

(EVM-3161) EVM Application: Quantifying Values in Various Industries and Project Phases

Author(s)/Presenters(s): Pranab Kumar Deb, P.Eng. PSP; Jatin Jajal, P.Eng. CCP CEP EVP

Time/Room: SUN 2:15-3:15/Room 4


Quantifying value in projects is a complex issue; more so in various industry types, different project locations, project phases and types of contracts. There is an opportunity at the outset of the project to choose the best possible way of quantifying value, so that it is easy, manageable and fit for purpose i.e., predict the future project outcome based on current performance. This paper provides valuable input for project management and controls staff to make the decision of choosing the right progress measurement technique based on available resources, the stage of the project, and based on available data. Feedback was obtained in the form of a survey from industry practitioners on best practices for quantifying progress values/percentages in various industries during various project phases. It provides the most widely accepted techniques for quantifying value using hours, costs (or both) including indirect costs.

(EVM-3165) Unpacking Earned Value Management for Oil and Gas Projects

Author(s)/Presenters(s): Anton W. van der Steege, CCP

Time/Room: TUE 2:15-3:15/Room 4


Earned value management (EVM) has been hailed as a definitive solution to project controls. However, in the oil and gas industry, specifically on large and mega projects, EVM has not been used extensively. EVM, as a methodology, has some pitfalls that need to be considered when attempting its application on very large projects. This is not an indictment of either the current practices in the oil and gas industry or on EVM, as both are indeed attending to similar challenges on projects. The ultimate approach should aim to achieve an optimum cost-benefit ratio.  It is necessary to unpack the true meaning of the key performance factors on a project to be able to draw valid conclusions in establishing which work processes contribute the most to predictability and profitability of the outcome of a project. This paper aims to share observations and experiences in this regard.


(EVM-3251) How to Calculate Estimate at Completion at a Project Level

Author(s)/Presenters(s): Mostafa AbdelRazik, EVP PSP

Time/Room: TUE 4:00-5:00/Room 4


This paper discusses two different methods of calculating estimate at completion adopted by two different software. Seamless reporting of EAC is essential. Differences between software on how estimate at completion (EAC) is calculated at a project level can confuse and mislead project management professionals, especially if these differences result in extreme project performance indicator variances from one software to another.

This paper compares between two methods of two scheduling software packages (MS Project and Primavera P6) used to calculate EAC at a project level:

1)      Adding up EAC for all control accounts on a project, at their appropriate levels to generate the EAC of the project.

2)      Adding up actual costs and earned value for all control accounts on a project at their appropriate levels, calculating the project’s cost performance index (CPI), and using this CPI to calculate EAC.

The paper also discusses different examples that will magnify the issue discussed. This paper also outlines the accuracy of method 1 above, compared to method 2. The goal of this paper is to be the first step of gaining consensus on how EAC is calculated at a project level.


(EVM-3265) Earned Value Challenges in Projects With Different Project and Functional Currencies

Author(s)/Presenters(s): Petronella Anna Cronje, CCP EVP

Time/Room: SUN 1:00-2:00/Room 4


This paper investigates the challenges faced by businesses that perform projects in currencies different than those of their functional currencies.

Projects on the African continent are often performed in US Dollars. However, the businesses executing these projects typically do not operate in countries where the functional currency is US Dollars. In addition, these countries often have volatile currencies. This presents various challenges when performing earned value evaluations, which are typically not considered in traditional scenarios where the functional and project currencies are the same. As such, there is limited research available that is based on practical examples.

To investigate these challenges, this paper examines a case study project. The project was based in Kenya and was performed both in US Dollars and Kenya Shillings. The company that executed the project was based in South Africa and, as such, had a functional currency of South African Rand. The case study evaluates the effect that the exchange rates of the various currencies had on the earned value evaluation of the project.

This paper then proposes a practical solution to the challenges associated with volatile exchange rates by presenting a strategy that can be implemented to mitigate the effects on the earned value of such projects. By applying the proposed solution, more accurate earned value calculations can be made in the functional currency. This results in project reports that add value for both project and business management, and not only for project management.


(EVM-3271) Emergent EVM Techniques for Construction Schedule Performance Measurement and Control

Author(s)/Presenters(s): Farah S. Demachkieh; Dr. Mohamed-Asem Abdul-Malak

Time/Room: MON 2:15-3:15/Room 1


The earned value management (EVM) method remains as the most recognized project performance measurement and control tool. An extensive number of techniques dealing with ways and means that improve the forecast of the at-completion project duration have been proposed in the last two decades. That said, the objective of the work presented in this paper is to investigate and propose a framework that can systematically guide the construction contract engineer in measuring and controlling project schedule performance. The proposed framework aims at making this control tool better accustomed and suited for exercising construction schedule control. In that respect, it accounts for the several emergent extensions, involving variant metrics that have been developed in complement to other proposed EVM-compatible methods, in order to offer better means for studying the project schedule performance and measuring the total expected delays. A notional project has been used to demonstrate the practicability of the majority of the steps incorporated under the proposed framework. The main research contribution lies in allowing a systematic and transparent evaluation that can better justify a fair initiation by project owners of the recovery of liquidated damages in case of expected schedule delays.


(EVM-3272) Comparative Analyses of Construction Cash Flow Predictions Using Empirical S-Curves

Author(s)/Presenters(s): Farah S. Demachkieh; Dr. Mohamed-Asem Abdul-Malak

Time/Room: MON 4:00-5:00/Room 1


The S-curve is the common tool used for depicting the project cumulative progress during execution. Numerous studies have been found to tackle the forecasting of the project-level cash flow in the preconstruction stages, using prediction techniques involving neural network and regression analyses as well as third-degree polynomial and sigmoid functions. The encountered models rely on an array of input variables, including the type of work and location, degree of project simplicity, team competence, curve slope and inflection point, and specific time-money milestones, among others. The objective of the presented work is concerned with the investigation of the applicability and prediction accuracy of the proposed planned progress estimation models from the perspectives of construction project owners and their appointed contract engineers. In this regard, data related to the earned value figures achieved from work progress actually made on a completed residential project were used for forecasting the contractor’s S-curve using the adopted models. The performed sensitivity analyses allowed the determination of those ranges of the input factors that satisfy an acceptable degree of prediction accuracy. The findings revealed a perfect fourth-degree polynomial fit to both the upper and lower curves forming the acceptable progress envelope deduced from the performed sensitivity analysis.

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