Earned value for construction contracts
![]() |
Earned value analysis (EVA), also known as earned value management (EVM), is a technique used to assess project progress by comparing the amount and cost of work that was planned to have been done by a particular stage with the amount that has actually been done and what it has actually cost.
This gives a good indication of how the project is progressing compared to what was planned and enables forecasts to be made about the eventual cost and time that will be required to complete the project.
Typically, EVA is carried out for each of the packages that make up the project. Actual outputs are measured against planned outputs (often on a weekly basis) using the units that individual companies use to price and measure work.
This provides an opportunity to investigate discrepancies and take remedial action where necessary. It also provides a fairly accurate insight into the financial wellbeing of package contractors and provides early warning of a shortage of resources or of an inefficient use of resources.
The key is to measure actual resource against planned resource using the production units by which estimates have been produced in order to price a tender. This can be:
- Hours worked per week.
- Number of workers per week.
- Volume of say, concrete per week per person.
- Units fixed per week per person.
These items can be plotted weekly to alert the user to trends and allow them to investigate causes. Furthermore, it provides an overall general picture of labour productivity for each monitored operation.
Carrying out this sort of analysis requires that project planning is broken down into packages and that tender documentation is drafted to require contractors to supply the information required.
[edit] Related articles on Designing Buildings Wiki
- Benchmarking.
- Contractor.
- Cost monitoring.
- Cost performance index (CPI).
- Identifying the causes of trends in construction labour productivity.
- Key performance indicators.
- Programme consultant.
- Progress of construction works.
- Schedule performance index (SPI).
- Sub-contractor.
- Tender.
- Tender documentation.
[edit] External references
Featured articles and news
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.
Heritage staff wellbeing at work survey.
A five minute introduction.
50th Golden anniversary ECA Edmundson apprentice award
Showcasing the very best electrotechnical and engineering services for half a century.
Welsh government consults on HRBs and reg changes
Seeking feedback on a new regulatory regime and a broad range of issues.
CIOB Client Guide (2nd edition) March 2025
Free download covering statutory dutyholder roles under the Building Safety Act and much more.