EARNED VALUE MANAGEMENT
There are three keys to maintaining absolute control of your project. Unfortunately, very few contractors have the time to monitor them. Even fewer have the expertise to fully comprehend and act on them.
Know the exact scope of your project
Keep up with construction schedules at all times
Understand construction cost at every stage
Analysing and managing this data is essential.
At RPMS, we use a technique called Earned Value Management (EVM) to ensure that client projects are fast, profitable and painless.
EVM reveals such useful data as:
Planned value – the approved cost of work scheduled to be completed by a specific date
Earned value – the approved cost of work completed by a specific date
Actual costs – the cost incurred for the completion of work by a specific date
Schedule variance (SV) – the amount of work done compared to the plan. This helps determine if a project is keeping to its schedule or not.
Cost variance (CV) – measures the initial agreed cost for a specific project compared to what was spent to complete the project. This helps determine if a project is within budget or not.
Schedule performance index (SPI) – measures how close a project is to completion in comparison to its agreed completion date.
Cost performance index (CPI) – measures the efficiency of a project financially. CPI calculates completed budget cost of a project to that of the actual cost of the work done to achieve it.
Clients use this data to identify discrepancies within the construction process. They can then take actions to counter or eliminate them.
Our clients can see how effective and efficient their contractors are. They get warnings relating to resource management.
In a single integrated system, EVM provides accurate forecasts of project performance problems.