Abstract:
Earn Value Management is a globally accepted and well established integrated planning and
control methodology that combines the measurement of cost, schedule and technical
performance. It enables early detection of performance issues and allows corrective actions
to be implemented in a timely manner.
The objective of this study is to establish the possibility of introducing Earn Value
Management as an ICTAD Condition of Contract for Major Contracts for the performance
reporting and evaluation.
In literature review derived the several important benefits of the EVM as an effective
performance measuring technique, the problems in implementing and commonly used
practice standards in the globe. The construction industry was an early private industry
adopter of EVM. EVM is commonly used in United States of America, United Kingdom,
Australia and other European and Asian countries to evaluate construction projects. EVM is
a flexible and universally applicable project management technique. However, in Sri Lankan
construction industry there is a need of a globally established performance monitoring
technique for the development of the industry and better performance. Under these
circumstances, it is important to find out the feasibility of introducing EVM as an ICTAD
condition for the construction industry.
The effectiveness of the ICTAD document to the industry is high. The level of acceptance is
significant; the responses show that 64% of respondents accept the Time Schedule as an
effective tool and 37.3% submit it on-time for all projects to fulfil the ICTAD requirement.
However, Sri Lankan construction industry doesn’t have a proper understanding and
knowledge about the use of Time Schedule and its limitations. The lack of knowledge about
the technique hinders the getting appropriate use of the technique. However, respondents
believe effective performance measuring technique should not have these limitations.
The result of this study confirms the possibility of introducing the EVM in Sri Lankan
construction industry for performance reporting and evaluation. Further, results highlight
that the importance and necessity of Earn Value Management to enhance the efficiency and
effectiveness of Sri Lankan construction industry. The majority of respondents believe the
most important aspect of the EVM is, it helps projects to be completed within time and cost
constraints compared to other benefits. The survey results illustrate that more than 80% of
respondents believe Sri Lankan construction industry need EVM concept for effective and
accurate performance management. The cost performance management is the primary
concern of the Industry. The Industry’s perception on the possibility of EVM
implementation is satisfactory.
