Abstract:
Most of construction organizations use project budget when commencing the project. but most of organizations don't properly monitor and use it as a performance measurement ool from the begninig to end of every project. There is no proper basis or standard practice in construction projects for preparing a project budget where Budgeted cost for work performed (BCWP) can be accurately calculated for performance measurement. If there is a proper framework to evaluate the budget, mainly, project team can understand the financial and physical progress of the project rather than other benefits of having a project budget. Earned Value Management (EVM) has been used in other industries such as software and product development businesses. Its applicability within the construction industry as risk-free performance measurement tool is still been overlooked in the industry. EVM supports effective management of projects and work packages collectively and enhances management of the enterprises’ project portfolio. Forecasting using these techniques provides a uniform approach to project reviews, building confidence in the project outcome as time progresses. The concept of EVM, process of EVM, benefits & potential drawbacks have been discussed at literature synthesis. Case study approach was selected for research methodology and Semi-structured interviews, for data collection with the professionals in construction projects to investigate the basic elements which may have in a costing framework and as well as conduct a case study for evaluating the feasibility of the proposed costing framework for evaluating the project budget. Therefore, this research intends to identify a framework to prepare a proper cost budget for public housing construction projects using which, BCWP can be accurately calculated. Usability of EVM in practice is reflected with the measurement of physical progress with the budgeted and actual cost of the housing project.
