International Journal of Engineering Business

and Social Science

Vol. 1 No. 02, December 2022, pages: 80-85

e-ISSN: 2980-4108, p-ISSN: 2980-4272

https://ijebss.ph/index.php/ijebss

Analysis of Project Cost and Time Performance Control Using

Earned Value Method Analysis (EVM-A)

(Case Study of Concrete Road Construction Project)

James Thoengsal

, Miswar Tumpu

Fakultas Teknik Universitas Teknologi Sulawesi, Makassar

University, Makassar Graduate School Hasanuddin University, Makassar

Email:

jamesthoengsal@gmail.com

tumpumiswar@gmail.com

Submitted: Nov, 25th 2022 Revised: Dec, 13th 2022 Publication: Dec, 16th 2022

Keywords

Abstract

Performance; Cost; Time;

Construction; Performance

Construction projects have a high level of project complexity. Controls generally

separate between the accounting system for costs and the construction project

schedule system. The purpose of this research is to find out how Earned Value is

applied in project performance and to estimate project costs and time. This yield value

method includes Project Implementation Progress Reports and project financial

accounting data at the reporting date, then processed to obtain BCWS (Budgeted Cost

of Work Schedule), ACWP (Actual Cost of Work Performance), and

BCWP

(Budgeted Cost of

Work Performance). From the results

of control analysis and

forecasting

the total Estimate All Schedule (EAS) is 9 weeks, the total planning time

is 16 weeks. This means the project performance runs 4 weeks faster than the initial

plan time. where from the results of project performance evaluation control, it is

estimated that the project can be completed in its entirety in approximately 14 weeks

from the planned duration of 16 weeks or two weeks faster than the duration of the

initial plan and in terms of actual costs it is estimated that there will be an overall

savings of around 10.55% of the actual costs that have been realized.

1. Introduction

Construction projects have a high level of project complexity. Sometimes there are delays in

progress or cost overruns (Kaming et al. 1997). Controls generally separate between the accounting system

for costs and the construction project schedule system (AHMAD SUHAIMI, Nawawi, and PUTEH SALIN

2016). The cost accounting system generates performance reports and project cost predictions, while the

schedule system generates project completion status reports (Anbari

2003). The two reports complement each

other, but can

provide different information about project conditions, so a system is needed that is able to

integrate time and cost information (Baiden, Price, and Dainty 2006).

For this purpose, the concept of Result Value can be used as a performance tool that integrates cost

and time aspects (Bovea and Pérez-Belis 2012). Outlines/objects of project control can be identified, such

as time and schedule, the time spent being longer

or according to plan. Then, budget and costs, the budget

used exceeds the initial budget that has been determined or not.

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IJEBSS Vol. 1 No. 02, December 2022, pages: 80-85

The formulation of the problem in this study is how is the performance of the Concrete Road

Construction project at Aryamas Residence Housing, Takalar Regency, South Sulawesi Province in terms

of time and cost and projected delays/progress.

The research objective to be achieved is to

examine whether the implementation of a project at the

time of reporting is still in accordance with the planned

budget and time schedule or not (Mabert, Soni, and

Venkataramanan 2003). Analyze the related elements in the form of achievement, cost and time

to find out whether the progress of project implementation is worth the part of the budget when measured

by the original plan, and estimate the total cost and time needed until the project is completed.

2. Materials and Methods

a. Types of

research

This research uses quantitative research methods. Where quantitative research is a type of research

that is more systematic, structured, specific,

and also well planned from the start to get a conclusion

(Miles

1990). Quantitative research places more emphasis on numbers which makes it more detailed and clearer.

In addition, the use of tables, graphs and diagrams makes it easier to read (Pinker 1990).

b. Time & Location of Research

The time referred to in this study is the overall

time of the course of research related to data collection

during research (Posada-Quintero and Chon 2020). The time needed by researchers to collect research

data is around 7 weeks, starting from March 12 2019 to April 25 2019. The research location in question

is the place where researchers get research data for this final project (Cypress 2018). Researchers

conducted

research on the Concrete Road Construction Project for

Infrastructure, Facilities and Utilities

(PSU) Public Houses Region II in the Aryamas Residence Housing District. Takalar, Prov. South Sulawesi.

Especially on 8

road sections, namely 1 section in Block C, 3 sections in

Block D, and 4 sections in Block

c. Research Data

Sources

What is meant by the source of data in research

is the subject from which the data can be obtained. Data

sources are divided into two, namely primary data and secondary data (Shimwell et al. 2022). Primary data

is data obtained by researchers directly (first-hand). While secondary data is data obtained by researchers

from existing sources. In this study, data from both

sources were used. Primary Data Primary data is in the

form of observations of researchers to the project site. Secondary Data Secondary Data is data that is

already available so we just need to find and collect it. We can

obtain secondary

data more easily

and quickly

because

it is already available to the project executor. Secondary data in the form of: Cost Budget Plan

(RAB)/Implementation Cost Budget Plan (RAP), Schedule / (S-Curve), Detailed Engineering Design

(DED), weekly Reports.

Data analysis

From the data that has been obtained, then the work weight is calculated for each item. Then an

analysis of cost and time control is carried out using several approaches, namely:

Calculation of Planned Cost or PV (Planned Value) or

Budgeted Cost for Scheduled Work (BCWS)

Planned Cost or BCWS by calculating the percentage of the work plan multiplied by the total project

cost that has been planned. Formula used:

𝐁𝐂𝐖𝐒

= %

𝐑𝐞𝐧𝐜𝐚𝐧𝐚

𝐁𝐀𝐂

………………………..…(1)

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Calculation of Result Value or EV (Earned Value)/Budgeted Cost for Work Performed (BCWP)

Percentage of completion/realization multiplied by the total planned real cost of the project. The formula

used is:

𝐁𝐂

𝐖

𝐏

𝐀

𝐤𝐭

𝐮

ulun

𝐥

𝐁

𝐀

𝐂

..............

(

)

Calculation of Schedule Variance (SV)

SV calculation to find out the deviation between BCWP and BCWS values. If the SV value is positive,

then more project work has been carried out than planned. 28 Conversely, if a negative value indicates poor

job performance because less work is done than the planned schedule. According to (Desmi, 2011), the

formula used:

𝐒𝐕

𝐁𝐂𝐖𝐏

–

𝐁𝐂𝐖𝐒

𝐄𝐕

–

𝐏𝐕

…………………….(3)

Calculation of Cost Variance (CV)

Calculation of CV to find out whether the project being carried out is still within the budget limit or

exceeds the budget. According to (Desmi, 2011), the formula used is:

𝐂𝐕

𝐁𝐂𝐖𝐏

–

𝐀𝐂𝐖𝐏

𝐄𝐕

–

𝐀𝐂

……………………(4)

Calculation of Time Performance Index / Schedule Performance Index (SPI)

SPI calculation to compare the weight of work in the field and in planning. If the SPI value = 0 then the

project is on time, if the SPI value < 1 then the project progress is behind compared to the plan. And

conversely, if SPI > 1 then progress is faster than planned. As According to (Efe and Demirors 2019),

Formula used:

𝐒𝐏𝐈

𝐁𝐂𝐖𝐏

𝐁𝐂𝐖𝐒

𝐄𝐕

𝐏𝐕

………………………..(5)

a. Calculation of Cost Performance Index (CPI)

CPI calculation by comparing the value of work that has been physically completed (BCWS) with the costs

incurred in the same period (ACWP). According to, the formula used is:

𝐂𝐏𝐈

𝐁𝐂𝐖𝐏

𝐀𝐂𝐖𝐏

𝐄𝐕

𝐀𝐂

…………………….(6)

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IJEBSS Vol. 1 No. 02, December 2022, pages: 80-85

3. Results and Discussions

Research Flow Chart

Figure 1. Research Flowchart

Figure 3. Time-Based Result Value Concept Graph

i. Calculation of Cost Variance (CV)

Cost Variance (CV) is the difference between the value obtained after completing the work packages

and the actual costs during project implementation. Calculation of Cost Variance (CV) in Week 1 to Week 7

is as follows:

Figure 4. Integrated Cost and Schedule Variance Graph

ii. Calculating the Cost Performance Index (CPI)

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The Cost Performance Index (CPI) is used to determine the cost status of the project. The calculation

for the CPI value obtained from week 1 to week 7 is as follows.

Figure 5. Graph of CPI and SPI Implementation Conditions

iii. Estimated Cost for remaining work (Estimate Temporary Cost/ETC) and time for remaining work

(Estimate Temporary Schedule/ETS).

Projection of delays/progress and Projection of Cost

Overrun/Cost Underrun at the end of the

Concrete Road Construction project at Aryamas Residence Housing District, Kab. Takalar, South

Sulawesi Province. From the cost aspect, the estimated cost for the remaining work (ETC) and the

estimated total project cost (EAC) obtained an EAC value of Rp. 312,087,921.25 while the BAC or RAB

value was Rp. 343,296,000.00, this means that at the end of

the project later it is estimated that there will be

a profit of Rp. 31,208,078.75 (9.09% of RAB). From the time aspect, the calculation of the estimated time

for remaining work

(ETS) is 2 weeks. Calculation of estimated total project time

(EAS) is (time used + ETS)

7 + 2 = 9 weeks, total planned

time is 13 weeks. This means the project performance runs

4 weeks faster

than the initial plan time

4. Conclusion

From the results of the application of the yield value method it is known that the results of the

review in the 7th week obtained BCWS = IDR 114,207,599.16; BCWP = IDR 336,878,761.28; ACWP =

IDR 306,254,055.74; Analysis of the Cost Performance Index (CPI) in the 7th week shows (CPI > 1) better

performance than planning while the Schedule Performance Index (SPI) shows a value (SPI > 1) in

terms

of work

performance earlier than

scheduled. And

it can be seen that the estimated final project cost / Estimate

At Complete (EAC) is IDR 312,087,921.25

with a planned budget of IDR 343,296,000.00. From the

calculation results, the estimated total project time/Estimate All Schedule (EAS) is 9 weeks, the total

planned time is 13 weeks. This means the project performance runs 4 weeks faster than the initial plan time.

From the results of the analysis of project performance evaluation control, it is estimated that the project can

be completed in its entirety in approximately 14 weeks from the planned duration of 16 weeks or two weeks

faster than the duration of the initial plan and in terms of actual costs it is estimated that there will be an

overall savings of around 10.55% of the actual costs that have been realized.

Thus the results of the analysis of performance evaluation control on the project show an increase

in time and cost performance which can be used as suggestions and considerations in implementing similar

projects in the future. In addition, the benefits of applying the Earned Value Management (EVM) method

are that it can assist in evaluating project performance and can show the amount of time/cost

performance

and deviations that occur in the project so

that control can be carried out before deviations get worse,

especially for project implementers, in this case the parties contractor. Overall, the biggest obstacle causing

the time deviation in the project in this study is due to the very limited number of local workers, so the best

solution is to increase the number of workers by sending workers from the Takalar district so that the project

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IJEBSS Vol. 1 No. 02, December 2022, pages: 80-85

implementation schedule can return to normal and avoid delays and cost overruns. actual projects,

especially road projects in the area. Obstacles found during research where detailed actual data for actual

costs are relatively difficult to obtain in detail, this is also an obstacle in the application of the use of the

EVM method as an instrument for measuring cost performance and project time. Therefore, in future studies,

it may be necessary to have detailed financial administration management for the construction contractor

for each item of costs incurred during the implementation of the construction project as supporting data in

applying the EVM method.

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for possible open access publication

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(https://creativecommons.org/licenses/by-sa/4.0/).