Using Earned Value Methods to Substantiate Change-of-Scope Claims

Kauffmann, Paul; Keating, Charles B.; Considine, Carol

doi:10.1080/10429247.2002.11415144

Cited by 8 publications

(3 citation statements)

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“…Earned value management is a project management tool that provides significant managerial benefits by identifying project deliverables, tying these outputs to specific group or individual responsibility, and tracking performance over time. If the claim cannot be resolved and legal remedies are pursued, EVM is consistent with key legal standards for substantiating cost claims (Kauffmann et al 2002). Specifically, Kim (2009) suggested that earned value (EV) can evaluate work progress, by identifying potential delays and overruns.…”

Section: Methods For Estimating Lost Productivitymentioning

confidence: 97%

Calculating cumulative inefficiency using earned value management in construction projects

Lee

2015

Can. J. Civ. Eng.

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Delay is one of the major factors in the cost overruns that affect construction projects. Furthermore, delay may cause a cumulative impact or ripple effect on productivity. Even though there are various methods proposed in previous researches that are considered applicable for analyzing the damages resulting from delay, there are some limitations to previous approaches. Notably, they do not consider the realistic production rates of activities over time. Moreover, they do not reflect the ripple effects on the performance of the work remaining, after the completion of delay events. This paper, therefore, proposes a method, which is referred to as the COME method (combination of measured mile analysis and earned value management (EVM) incorporating probable production rates) that can reasonably calculate the cumulative damages due to delay, considering the feasible rates of production over time, and the ripple effects on productivity. The COME method includes the 'learning curve', and the 'earned value analysis' as research methodologies. Earned value management was utilized, to demonstrate and calculate the effects of the cumulative loss of productivity on the remaining work, as well as on the impacted work due to delay. An example analysis showed that the COME method is a feasible choice for damages calculation, considering probable production rates over activity progress, and indirect impacts on performance changes, after the completion of delay events. It is noted, however, that the COME method relies on the use of a subjective or availability of an estimated production rate for the estimate to complete calculations. Résumé :Les retards sont l'un des principaux facteurs des dépassements de coût observés dans les chantiers de construction. De plus, ces mêmes retards peuvent produire un effet cumulatif ou effet domino sur la productivité. Bien qu'il existe diverses méthodes, proposées par des études menées précédemment et considérées comme étant applicables à l'analyse des dommages engendrés par les retards, ces approches ont des limites. En particulier, elles ne tiennent pas compte de taux de production réalistes liés aux activités menées au fil du temps. Par ailleurs, elles ne reflètent pas les effets domino observés sur le rendement du travail restant à accomplir, après la fin des périodes de retard. Le présent article propose donc une méthode, appelée « méthode COME » (combinaison de l'analyse de la perte de productivité et de la méthode de la valeur acquise, avec prise en compte de taux de production probables), qui permet de calculer de manière raisonnable les dommages cumulatifs résultant des retards et des effets domino affectant la productivité, en prenant en compte des taux de production plausibles observés au fil du temps. La méthode COME comprend une « courbe d'apprentissage » et « l'analyse de la valeur acquise » comme méthodologies de recherche. La méthode de la valeur acquise (earned value management ou EVM) a été utilisée pour démontrer et calculer les effets de la perte cumulative de productivité...

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Section: Methods For Estimating Lost Productivitymentioning

confidence: 97%

Calculating cumulative inefficiency using earned value management in construction projects

Lee

2015

Can. J. Civ. Eng.

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“…Considering the negative effects of possible claims on the final goals and success of the project, in the last two decades more studies have been conducted on the management of construction claims [8][9][10][11][12]. One of the studies showed that the causes of claims often include poor forecasting and review of site conditions, tender with a set of incomplete maps, the untimely introduction of design revisions, and construction disruption [13].…”

Section: Claim Management Modelsmentioning

confidence: 99%

Performance Prediction of Construction Projects Based on the Causes of Claims: A System Dynamics Approach

et al. 2022

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Conflict in human relations is unavoidable; therefore, it can occur in construction projects that are full of many human relationships. These conflicts can lead to claims if interlocutors do not agree. The main result of the claims is the delay and overrun of costs in construction projects. Additionally, poor management of claims affects the success of construction projects and their budget and schedule. Moreover, controlling claims ensures the successful completion of construction projects and minimizes delays and disputes. This study sought to improve the project performance by ranking the causes of claims and examining their impacts on Key Performance Indicators (KPI) using the combined AHP-TOPSIS (Analytic Hierarchy Process-Technique for Order of Preference by Similarity to Ideal Solution) method. Given that construction projects are constantly evolving and becoming more complex and have many linear and nonlinear relationships and structures, these projects can be considered as a kind of system dynamics. The system dynamics have been used for nearly four decades to analyze and improve the performance of construction projects. This study attempted to provide a model with a system dynamics approach to predict the performance of construction projects based on the reasons for the claim. In this model, the most important performance indicators, interactions between them, and the relationship of these indicators with the reasons for claiming were simulated. The results showed that delays are the most important reasons for making claims, and they have a great impact on the KPIs such as scheduling, sustainability, customer satisfaction, quality, and team satisfaction, respectively. In the modeling and simulation discussion in this study, the proposed model simulated the dependencies between the KPIs of construction projects and their changes over time and provides a better understanding of how performance indicators interact with each other. Additionally, it can be used as a basis for simulating different management policies to find the best solution to prevent and correct the negative effects of poor performance.

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“…Rad (1999) discusses the use of Work Breakdown Structure. Earned Value Management is a topic of discussion for many authors (Brandon Jr., 1998;Fleming and Koppelman, 2002;Kauffmann and Keating et al, 2002).…”

Section: Project Management Tools and Techniquesmentioning

confidence: 99%

An Empirical Study on the use of Project Management Tools and Techniques across Project Life-Cycle and their Impact on Project Success

Patanakul

Iewwongcharoen

Milosevic

2010

Journal of General Management

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Even though project management tools and techniques (PMTT) have been commonly used by project managers, research on PMTT still has not been adequately investigated as to whether its use contributes to the success of a project. The lack of such knowledge leads to the use of PMTT because of popularity rather than any known benefits. To respond to this issue, the authors conducted a large-sample study based on a survey and statistical analyses to investigate the use of PMTT. Evidence emerged that some PMTT should be used in a certain phase of a project and such uses contribute to project success.

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Using Earned Value Methods to Substantiate Change-of-Scope Claims

Cited by 8 publications

References 0 publications

Calculating cumulative inefficiency using earned value management in construction projects

Calculating cumulative inefficiency using earned value management in construction projects

Performance Prediction of Construction Projects Based on the Causes of Claims: A System Dynamics Approach

An Empirical Study on the use of Project Management Tools and Techniques across Project Life-Cycle and their Impact on Project Success

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