Potential of applying earned value management (evm) as a performance evaluation technique in building construction projects in Sri Lanka

Abstract

Construction industry has some unique characteristics that brings specific challenges in achieving required performance. Currently majority of construction companies evaluate the project performance by program review method, which can identify the performance after the activity accomplishment or action is accomplished. The project should have begun to use the existing performance technique. Earned Value Management (EVM) is a more robust, internationally recognized and adhering process to evaluate the project performance. EVM considers the performance in Time, Cost and Quality aspects. EVM compares the project Planned Value (PV), Earned Value (EV) and Actual Cost (AC). Current knowledge showed no evidence of EVM in Sri Lankan construction projects. This research was conducted to identify the potential of applying Earned Value Management (EVM) as a Performance Evaluation Technique in Building Construction Project in Sri Lanka. The research followed a qualitative approach. The researcher could be able to identify the facilitators, barriers and the challenges of applying EVM in current context. Semistructured interviews were conducted to investigate status and key challenges for the implementation. After analysing the data, the researcher could conclude major barriers and challenges on implementing EVM as a performance evaluation technique for Sri Lanka construction industry. Its consumption of considerable extra cost, need to train staff, reluctance of some qualified employees to adhere to the technique due to various constraints could be identify as common bottlenecks.