Exploring Benefits, Critical Success Factors and Barriers of Earned Value Management in Construction Projects: A Preliminary Evaluation
Keywords:
Construction Projects, Cost Monitoring, Earned Value Management (EVM), Questionnaire Survey, Relative Importance Index, Schedule MonitoringAbstract
Timely and cost-effective completion of projects is crucial for achieving project goals. Earned Value Management (EVM) has been accepted as a very successful quantitative technique for monitoring, measuring, and managing project performance across several industries. The use of EVM in construction projects is on the rise due to its considerable importance. However, there is still the potential to improve its implementation in construction projects. This paper aims to identify the key benefits, critical success factors and barriers of adoption of EVM in construction projects. A set of 10 benefits, critical success factors and barriers was initially created in the first phase. In second phase, Subject matter experts evaluated the content of these items based on their relevance, clarity, and simplicity using a 4-point Likert grading scale. Each item’s content validity index and interrater reliability were computed, and five benefits, critical success factors and barriers which maintained content validity in the final version of the questionnaire. In third phase, 73 valid responses from construction project stakeholders in India with the help of Google Forms. The data was analysed using the Jamovi 2.3.26 software, Finally, in forth phase, mean weighted value and relative importance index analysis yielded two key benefits, two barriers and two critical success factors. The research sample consisted solely of construction project stakeholders from India. This study will be useful for stakeholders’ decision-making in adopting of monitoring methods for construction projects.
References
Alzraiee, H. (2018) ‘Integrating BIM and Earned Value Management System to Measure Construction Progress’, Wang, C., Berryman, C., Harris, R., Harper, C. and Lee, Y. (eds.) Construction Research Congress 2018. Reston, VA: American Society of Civil Engineers, Vol.2018-April, pp. 684–693.
Anbari, F.T. (2004) ‘Earned value project management method and extensions’, IEEE Engineering Management Review, 32(3) Institute of Electrical and Electronics Engineers Inc., pp. 97–110.
Aramali, V., Sanboskani, H., Gibson, G.E. and El Asmar, M. (2022) ‘EVMS Maturity and Its Impact on Project Cost and Schedule Performance of Large and Complex Projects: A Preliminary Analysis’, Construction Research Congress 2022. ASCE, Vol.3–C, pp. 1100–1109.
Chen, S. and Zhang, X. (2012) ‘An analytic review of earned value management studies in the construction industry’, Construction Research Congress 2012: Construction Challenges in a Flat World, Proceedings of the 2012 Construction Research Congress., pp. 236–246.
Dolla, T., Jain, K. and Kumar, V.S. (2023) ‘Strategies for digital transformation in construction projects: stakeholders’ perceptions and actor dynamics for Industry 4.0’, ITcon Vol. 28, pg. 151-175, http://www.itcon.org/2023/8, 28(8) International Council for Research and Innovation in Building and Construction, pp. 151–175. Available at: Must specify DOI or URL if using the accessed field (Accessed: 31 October 2023).
Fleming, Q.W. and Koppelman, J.M. (1997) ‘Earned value project management’, Cost Engineering (Morgantown, West Virginia), 39(2) AACE Inc., pp. 13–15.
Giammalvo, P.D. (2022) ‘The Origins and History of Earned Value Management: A Contractor’s Perspective’, PM World Journal, XI(IX)
González, F.R.D., Tovar, L.A.R. and Tapia, M.C. (2022) ‘Evaluation of EVM/ES forecasting methods in hospital construction projects’, Revista Ingenieria de Construccion, 37(3) Potificia Universidad Catolica de Chile, pp. 405–416.
Gowan, J.A., Mathieu, R.G. and Hey, M.B. (2006) ‘Earned value management in a data warehouse project’, Information Management and Computer Security, 14(1), pp. 37–50.
Gündüz, M., Nielsen, Y. and Özdemir, M. (2013) ‘Quantification of Delay Factors Using the Relative Importance Index Method for Construction Projects in Turkey’, Journal of Management in Engineering, 29(2) American Society of Civil Engineers (ASCE), pp. 133–139. Available at: Must specify DOI or URL if using the accessed field (Accessed: 31 October 2023).
Jasim, N.A., Ibrahim, A.A. and Hatem, W.A. (2023) ‘Artificial neural networks models for predicting performance measurement of oil projects’, Asian Journal of Civil Engineering
Jones, M.E. (2023) ‘Quantified Benefits of Earned Value Management’, IEEE Aerospace Conference Proceedings., Vol.2023-March.
Juliana, A., Oladimeji, O., Abiodun, A.O., Haddad, A.N. and Tam, V.W.Y. (2023) ‘Influence of rework on construction project performance in Nigeria’, International Journal of Construction Management, Taylor & Francis Available at: 10.1080/15623599.2023.2239439 (Accessed: 31 October 2023).
Kapuganti, C.B., Balaji, K.V.G.D., Kumar, T.S. and Mogili, S. (2024) ‘Duration Forecasting Capability of Critical Path-Focused Earned Duration Management’, International Journal on Engineering Applications, 12(1), pp. 15–23.
Kapuganti, C.B., Balaji, K.V.G.D., Kumar, T.S. and Prasad, I.L.N. (2023) ‘Grey Earned Duration Management: a New Schedule Monitoring Approach’, International Review of Civil Engineering, 14(4), pp. 291–299.
Karthik, D. and Kameswara Rao, C.B. (2022) ‘Identifying the significant factors affecting the masonry labour productivity in building construction projects in India’, International Journal of Construction Management, 22(3) Taylor & Francis, pp. 464–472. Available at: Must specify DOI or URL if using the accessed field (Accessed: 5 November 2023).
Kineber, A.F., Uddin, M.S. and Momena, A.F. (2022) ‘Exploring the Critical Success Factors of Value Management Implementation for Sustainable Residential Building Project: A Stationary Analysis Approach’, Sustainability 2022, Vol. 14, Page 16215, 14(23) Multidisciplinary Digital Publishing Institute, p. 16215. Available at: 10.3390/SU142316215 (Accessed: 2 November 2024).
Lei, Z., Hu, Y., Hua, J., Marton, B., Goldberg, P. and Marton, N. (2022) ‘An Earned-Value-Analysis (EVA)-based project control framework in large-scale scaffolding projects using linear regression modeling’, Journal of Information Technology in Construction, 27 International Council for Research and Innovation in Building and Construction, pp. 630–641.
Lennon, B. and Francis, A. (2010) ‘Improving the practical application for monitoring project progress using the earned value method’, Proceedings, Annual Conference - Canadian Society for Civil Engineering., Vol.1, pp. 11–16.
Lewis, P. and Hazzard, E. (2013) ‘Using Earned value management to quantify economic, energy, and environmental sustainability in construction activities’, Bedard, C. and Katsanis, C. J. (eds.) Proceedings, Annual Conference - Canadian Society for Civil Engineering. Canadian Society for Civil Engineering, Vol.1, pp. 363–366.
Lynn, M.R. (1986) ‘Determination and quantification of content validity’, Nursing Research, 35(6), pp. 382–386.
Mahmoudi, A., Javed, S.A. and Deng, X. (2021) ‘Earned duration management under uncertainty’, Soft Computing, 25(14) Springer Science and Business Media Deutschland GmbH, pp. 8921–8940.
De Marco, A. and Narbaev, T. (2013) ‘Earned value-based performance monitoring of facility construction projects’, Journal of Facilities Management, 11(1) Emerald Group Publishing Ltd., pp. 69–80.
Martens, A. and Vanhoucke, M. (2017) ‘A buffer control method for top-down project control’, European Journal of Operational Research, 262(1), pp. 274–286.
Morad, M. and El-Sayegh, S.M. (2016) ‘Use of earned value management in the UAE construction industry’, ICIMSA 2016 - 2016 3rd International Conference on Industrial Engineering, Management Science and Applications. Institute of Electrical and Electronics Engineers Inc.
Nazam, F., Husain, A. and Gull, M. (2022) ‘Standardization of Taqwa (Piety) Scale for Muslims: An Exploratory Study’, Islamic Guidance and Counseling Journal, 5(1) Institut Agama Islam Ma’arif NU (IAIMNU) Metro Lampung, pp. 30–39. Available at: 10.25217/IGCJ.V5I1.1662 (Accessed: 31 October 2023).
Polit, D.F., Beck, C.T., Steven, § and Owen, V. (2007) ‘Focus on Research Methods Is the CVI an Acceptable Indicator of Content Validity? Appraisal and Recommendations’, Research in Nursing & Health, 30, pp. 459–467. Available at: 10.1002/nur.20199 (Accessed: 31 October 2023).
Priyo, M. (2021) ‘Earned Value Management System in Indonesian Construction Projects’, International Journal of Integrated Engineering, 13(3) Penerbit UTHM, pp. 37–45.
Proaño-Narváez, M., Flores-Vázquez, C., Vásquez Quiroz, P. and Avila-Calle, M. (2022) ‘Earned Value Method (EVM) for Construction Projects: Current Application and Future Projections’, Buildings, 12(3) MDPI
Rashid, H.A., Al-Juboori, O.A., Mohammed, A. and Mahjoob, R. (2021) ‘New cost control techniques in mega construction projects’, Periodicals of Engineering and Natural Sciences, 9(2), pp. 454–461. Available at: 10.21533/PEN.V9I2. 1833.G785 (Accessed: 12 December 2023).
Shrestha, N. (2021) ‘Factor Analysis as a Tool for Survey Analysis’, American Journal of Applied Mathematics and Statistics, 9(1), pp. 4–11. Available at: 10.12691/ajams-9-1-2 (Accessed: 8 December 2023).
Stanek, S. and Kuchta, D. (2020) ‘Increasing earned value analysis efficiency for IT projects’, Journal of Decision Systems, 29(sup1) Taylor and Francis Ltd., pp. 352–360.
Suenaga, S., Tei, K. and Honiden, S. (2018) ‘Applicability of earned value management for deadline energy constrained applications’, IEEE International Conference on Industrial Engineering and Engineering Management. IEEE Computer Society, Vol.2017-December, pp. 691–695.
Teixeira Netto, J., Liberato Fernandes de Oliveira, N., Pimentel Aleluia Freitas, A. and Alberto Neves dos Santos, J. (2020) ‘Critical factors and benefits in the use of earned value management in construction’, Brazilian Journal of Operations & Production Management, 17(1) Available at: 10.14488/BJOPM.2020.007 (Accessed: 7 December 2023).
Toyin, J.O. and Mewomo, M.C. (2023) ‘Assessing the innovative skills and competencies required of construction management graduates’, Organization, Technology and Management in Construction, 15(1) Sciendo, pp. 90–106. Available at: 10.2478/OTMCJ-2023-0002 (Accessed: 2 November 2024).
Vaibhava, S. and Prakash Rao, B. (2019) ‘Challenges of earned value management-application in Indian construction industry’, International Journal of Recent Technology and Engineering, 8(2) Blue Eyes Intelligence Engineering and Sciences Publication, pp. 733–735.
Wendell, R.E., Lowe, T.J. and Gordon, M.M. (2022) ‘Dangers in using earned duration and other earned value metrics to measure a project’s schedule performance’, Central European Journal of Operations Research, Springer Science and Business Media Deutschland GmbH, pp. 1–16.
Wibiksana, R. (2012) ‘Earned Value Management: Adapted for use in Underground Mining Operations’, PM World Journal EVM Adapted for Underground Mining Operations, I Available at: www.pmworldlibrary.net (Accessed: 18 September 2023).
Williams, B., Onsman, A., Brown, T., Andrys Onsman, P. and Ted Brown, P. (2010) ‘Exploratory factor analysis: A five-step guide for novices’, Journal of Emergency Primary Health Care, 8(3) Centre for Ambulance and Paramedic Studies, pp. 1–13. Available at: 10.33151/AJP.8.3.93 (Accessed: 31 October 2023).
Yang, J.-B. and Lai, T.-H. (2023), ‘Selecting EVM, ESM and EDM(t) for managing construction project schedule’, Engineering, Construction and Architectural Management, Vol. 31 No. 12, pp. 4988-5006. https://doi.org/10.1108/ECAM-02-2023-0115.
Ying, H. (2017) ‘The Highway Construction Cost Control Model Based on the Improved Earned Value Method Theory’, Proceedings - 2016 International Conference on Smart City and Systems Engineering, ICSCSE 2016. Institute of Electrical and Electronics Engineers Inc., pp. 461–464.
Zhan, Z., Wang, C., Yap, J.B.H., Samsudin, S. and Abdul-Rahman, H. (2019) ‘Earned value analysis, implementation barriers, and maturity level in oil & gas production’, South African Journal of Industrial Engineering, 30(4) South African Institute of Industrial Engineering, pp. 44–59.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Nigerian Journal of Technological Development
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
In accordance with the Copyright Act of 1976, which became effective January 1, 1978, the following statement signed by each author must accompany the manuscript submitted: "I, the undersigned author, transfer all copyright ownership of the manuscript referenced above to the Nigerian Journal of Technological Development, in the event the work is published. I warrant that the article is original, does not infringe upon any copyright or other proprietary right of any third party, is not under consideration by another journal, and has not been published previously. I have reviewed and approve the submitted version of the manuscript and agree to its publication in the Nigerian Journal of Technological Development." A copyright transfer form should be downloaded from the NJTD Website ( http://njtd.com.ng/index.php/njtd). Author(s) will be consulted, whenever possible, regarding republication of material. All authors must have access to the data presented and the authors and sponsor (if applicable) must agree to share original data with the editor if requested.
