Construction is a long work. It goes on a long journey from the paper plan to the actual physical structure. During all the struggles, it is good to manage and keep track of the progress. To do all this properly earned value management is required.
Earned Value Management
Earned value management is about project management. This involves schedule, scope, and cost to gauge project progress.
This includes these as the fundamental elements of progress evaluation:
- Construction plan of the project
- The planned cost of the project
- Planned value, intended work
- Earned value, work completed up till the point of valuation
- The actual cost spent so far
- Plan of cost spent and time utilized.
Mainly EVM is about quantifying between the planned valve and earned value or PV and EV. These services are provided by earned value management consultants.
Like other consultants, EVM consultants too learn and specialize in their field. They learn about how to understand construction plans to compare both PV & EV and others. Similarly, to understand scheduling and budgeting for understanding the progress.
With all that expertise of earned value management consultants, needed earned value management is prepared. This makes the needed effect possible.
Before the project, exist its plan. This plan includes wholesome information about the intended structure. The plan plays the primary role in having any related service and in carrying out intended work. Also, as EVM is requested, plan to provide the base for every calculation.
PV and EV
PV stands for planned value as the intended work. This is based on the construction project. While EV stands as earned value. This concerns the work done at the point when progress is needed to be tracked.
Both of these combine to provide the needed comparison between intended and achieved.
To keep track of progress schedule makes a major portion. Before starting any project, contractors or others who are carrying out construction have scheduling services. These services equip them with dates regarding the start & end of every task and the whole project.
These services are prepared with the help of various scheduling software like Primavera or MS Project. Thus, they are named accordingly as Primavera or MS Project scheduling services.
With scheduling in hand, EVM becomes simpler. It is easier to compare what should be done and what is done.
The cost spent to the point of EVM is also a major factor in determining the achieved work status. Before starting the intended project contractors and others have the possible cost required for the project. Thus, as the project progresses, it utilizes resources as material acquired against their cost. By comparing the two costs, which are the estimated cost and already spent one, EVM is calculated.
How Keep Track of Work Progression Help?
Knowing changes a lot of things including the possible outcome. Construction like other things is started with some intention in mind. To achieve that and possibly improve, keeping track of work progression makes a huge contribution.
Other than that, this helps in many ways. These include:
Keeping track in the start can possibly motivate the ongoing project or convince them to abandon the project. Going through and investing in the wrong project can lead to a waste of both time and resources. This way owners and investors know where their investment is going. In case they are okay with what is going on they keep on or they pull back otherwise.
This provides a check on the contractors and their work. In most cases, owners just hire contractors and let them do all the work. While the construction work continues by contractors, it is wise to have a check on them. Whether they are spending properly or not and whether they are working according to the preplanned schedule or not. This further increases the work speed and produces needed results.
Rectification becomes easy with keeping track. Contractors, builders, or others building the underlying project become aware of the weak point and can easily correct that. In this way, time is saved. Labor effort is saved. Leading finally to better output.
Work quality is managed. Quality is perhaps more important than quantity. As it is important, it is also a delicate thing. This is a high chance of quality falling during the ongoing construction work.
Thus, in this and many more ways keeping track of your ongoing construction work can help improve and achieve better.