Abstract:
Construction industry has some unique characteristics that brings specific challenges in achieving required
performance. Currently majority of construction companies evaluate the project performance by program
review method, which can identify the performance after the activity accomplishment or action is
accomplished. The project should have begun to use the existing performance technique. Earned Value
Management (EVM) is a more robust, internationally recognized and adhering process to evaluate the
project performance. EVM considers the performance in Time, Cost and Quality aspects. EVM compares
the project Planned Value (PV), Earned Value (EV) and Actual Cost (AC). Current knowledge showed no
evidence of EVM in Sri Lankan construction projects. This research was conducted to identify the potential
of applying Earned Value Management (EVM) as a Performance Evaluation Technique in Building
Construction Project in Sri Lanka. The research followed a qualitative approach. The researcher could be
able to identify the facilitators, barriers and the challenges of applying EVM in current context. Semistructured
interviews were conducted to investigate status and key challenges for the implementation. After
analysing the data, the researcher could conclude major barriers and challenges on implementing EVM as
a performance evaluation technique for Sri Lanka construction industry. Its consumption of considerable
extra cost, need to train staff, reluctance of some qualified employees to adhere to the technique due to
various constraints could be identify as common bottlenecks.
