Course of planned, actual and earned cost curves of diverse construction investments

Abstract

The purpose of the paper is to analyse and evaluate the course of various construction projects and to compare the planned, actual and earned costs. The data for the development of the original research methodology come from the authors' own experience and professional work involving the providing of Bank Investment Supervision services documented in 536 BIS reports. On their basis, charts of planned/estimated, invoiced/actual and performed/earned values of the cumulative costs of the examined construction projects were prepared. The selected BCWS, ACWP, and BCWP graphs of the Earned Value Method curves in 8 homogeneous typological groups were presented. Such information is fundamental in terms of controlling and predicting of cost and schedule performances within homogeneous construction sectors. While planning diverse investments budget and timeframe the executives may foresee in measurable way the most probable spend of actual and earned values of managed projects. They can estimate the range of cost and schedule overrun at the construction project completion and set up mitigation actions to minimize the risks of such overrunning.

Keywords:

• Construction project
• cost
• S-curve
• Earned Value Method

Disclosure statement

No potential conflict of interest was reported by the author(s).