EARNED VALUE ANALYSIS FOR A CONSTRUCTION PROJECT

Cost over-runs and time over-runs are prevalent in most of the projects carried out in developing nations such as India. There may be multiple reasons for these overruns. In order to reduce them, there should be efficient use of the construction softwares available in the market. This paper emphasises the use of these softwares to reduce these issues by the use of a scientific technique called earned value analysis. Earned Value Analysis is an industry standard method of measuring a project’s progress at any given point of time, forecasting its completion date and final cost, analysing variances in the schedule and budget as the project proceeds. It is a method for measuring project performance, it indicates how much of the budget should have been spent, in view of the amount of work done and the baseline cost for the task, assignment and resources. The analysis helps in finding out the deviations both in cost as well as in time i.e. schedule variance and cost variance. This paper emphasizes on the use of this techniques in modern softwares such as Microsoft Project and Oracle Primavera P6 in order to exercise better management over the project.