Before embarking on a construction project, project managers and their teams undertake meticulous planning to ensure timely and budget-compliant delivery of project deliverables.
In this stage, identifying potential risks that could hinder the smooth execution of a construction project at any stage is crucial. Equally important is tracking project performance and progress throughout the construction project lifecycle. These indicators help teams determine whether they are on track or falling behind in executing project requirements.
By incorporating Earned Value Management (EVM) into their project management process, project teams can assess the timeliness and quality of their construction project against their original project plan. This comparison allows them to evaluate their current performance at any stage of the project against their original project review, which serves as a baseline.
If a project team is falling behind or not performing up to the required standards, they can implement a contingency plan to get back on track and deliver high-quality project outcomes.
Now, let’s delve into the role of EVM in project management within the construction industry.
The role of EVM in project management
Early risk identification
EVM aids in detecting early warning signs of issues and variances from the planned schedule and budget, either during the execution or post-project phase. Early identification of issues allows project managers to take corrective actions before problems escalate, minimising the impact on the allocated project budget and deadlines.
Objective progress assessment
EVM provides an objective and standardised way to assess construction project progress and performance. By comparing the original project plan, project teams have a baseline to compare with their actual project performance. This comparison allows project managers to determine if their project is on track, ahead, or behind schedule.
Cost and schedule integration
EVM integrates cost and schedule information, providing a holistic view of project performance. This integration allows for a more effective analysis of the relationship between time and cost, helping project managers make informed decisions. EVM is also effective in keeping within budget and deadlines by implementing contingency plans.
Objective decision-making
EVM provides an objective basis for decision-making, reducing reliance on subjective assessments. This enhances the transparency of project performance and facilitates more informed decision-making at various levels of the project hierarchy. Decision-making can lead to more effective utilisation of labour, materials, and equipment.
Leverage Earned Value Management with Compass Consult
Project teams often aim to deliver optimised 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 specialises in teaching project teams how to leverage Earned Value Management (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 project planning consultancy and enhance your project management capabilities.