Schedule variance analysis and Earned Values in a construction project

Unpredictable events are typical for construction projects, and therefore the use of knowledge and skills applicable to project control is essential for improved consequent larger chance of achieving planned scope. The thesis presents theoretical background of construction project time and cost management, and the basics of Earned Value Method (EVM). A method is used for integrating project scope, schedule and cost (resources), and for objectively measuring project performance and progress. Performance is measured by determining the budgeted cost of work performed (i.e., earned value) and comparing it to the actual cost of work performed (i.e., actual cost). Progress is measured by comparing the earned value to the budgeted cost of work scheduled (i.e., planned value). The second part of the thesis presents the application of the theoretical background to a case study. It can be concluded that several advantages are introduced in the control system when using EVM; it enables comprehensive project follow-up and provides more realistic view on a state of a project than any other schedule or cost information itself. However, it is also important to determine the cause of a variance in schedule and cost varience determination and to decide, if corrective action is required