Professional Documents
Culture Documents
Asoka Perera
Professor of Civil Engineering
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CE 4250 Construction Project Management
2 © Asoka Perera
CE 4250 Construction Project Management
Overview of lecture
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CE 4250 Construction Project Management
5 © Asoka Perera
CE 4250 Construction Project Management
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CE 4250 Construction Project Management
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CE 4250 Construction Project Management
Some Videos
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CE 4250 Construction Project Management
1.0 Project Cost Estimating
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CE 4250 Construction Project Management
1.0 Project Cost Management
10 © Asoka Perera
CE 4250 Construction Project Management
11 © Asoka Perera
CE 4250 Construction Project Management
12 © Asoka Perera
CE 4250 Construction Project Management
15 © Asoka Perera
CE 4250 Construction Project Management
16 © Asoka Perera
CE 4250 Construction Project Management
17 © Asoka Perera
CE 4250 Construction Project Management
19 © Asoka Perera
CE 4250 Construction Project Management
21 © Asoka Perera
CE 4250 Construction Project Management
23 © Asoka Perera
CE 4250 Construction Project Management
24 © Asoka Perera
CE 4250 Construction Project Management
1.3 Cost Estimating – Outputs
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CE 4250 Construction Project Management
2.0 Cost Budgeting – Inputs
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CE 4250 Construction Project Management
2.1 Cost Budgeting – Inputs
29 © Asoka Perera
CE 4250 Construction Project Management
2.2 Cost Budgeting – Tools and Techniques
32 © Asoka Perera
CE 4250 Construction Project Management
2.3 Cost Budgeting – Outputs
33 © Asoka Perera
CE 4250 Construction Project Management
2.3 Cost Budgeting – Outputs
35 © Asoka Perera
CE 4250 Construction Project Management
2.3 Cost Budgeting – Outputs
36 © Asoka Perera
CE 4250 Construction Project Management
3.0 Cost Control – Overview
37 © Asoka Perera
CE 4250 Construction Project Management
3.0 Cost Control – Overview
39 © Asoka Perera
CE 4250 Construction Project Management
3.1 Cost Control – Inputs
41 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
42 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
43 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
44 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Earned value analysis involves calculating
five values for each activity or summary
activity from a project’s WBS
Five main variables are:
• The Planned Value(PV, Earlier BCWS);
• The Earned Value(E V, Earlier BCWP);
• The Actual Costs(AC, Earlier ACWP);
• The Cost Variance (CV,);
• The Schedule Variance (SV);
45 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Five main variables are:
• The Planned Value(PV, Earlier BCWS);
• Planned Value is how much the project should
cost to get to a specific point in the schedule.
• For example, if a project has a budget of
Rs.100,000 and month six represent 40% of the
project work, the PV for month six is Rs.40,000/=.
Planned Value used to be known as the Budget
Cost of Work Schedule (BCWS)
46 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Five main variables are:
• The Earned Value(E V, Earlier BCWP);
• Earned Value is representative of the work
completed to date regardless of how it took to
accomplish it.
• For example, if a project has a budget of
Rs.100,000 and the work completed to date
represents 25% of the entire project work, its EV
is Rs.25,000/=. Earned Value used to be known
as the Budgeted Cost of Work Performed (BCWP)
47 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Five main variables are:
• The Actual Costs(AC, Earlier ACWP);
• Actual Costs is the actual amount of monies the
project has required to date.
• For example, if a project has a budget of
Rs.100,000 and Rs.35,000/= has been spent on
the project to date, the AC of the project would
be Rs.35,000/=. This was earlier know as Actual
Cost of Work Performed (ACWP)
48 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Five main variables are:
• The Cost Variance (CV,);
• A Cost Variance occurs when the actual cost of
the project work is more than or less than EV.
• For example, EV is calculated to be Rs.25,000/=,
but you had spend Rs.35,000/= to get there. As
such the Cost Variance (CV) is Rs.10,000/=.
49 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
Five main variables are:
• The Schedule Variance (SV);
• A Schedule Variance occurs when the EV is less
than the PV.
• For example, the project is supposed to be worth
Rs. 40,000/= in month six; however, at month six
your EV is only Rs.25,000/=. You have got SV of
Rs.15,000/=
50 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
TERM FORMULA
Earned Value EV, Budgeted Cost of Work Performed (BCWP) =
budgeted cost to date X percent complete
Cost Variance CV = EV — AC(actual cost of work performed)
Schedule Variance SV = EV — PV
Cost Performance Index CPI = EV/AC
Schedule Performance Index SPI = EV/PV -
Budget at Completion BAC = Total Budget
Estimate at Completion EAC = BAC/CPI
Estimate to Complete ETC = EAC - AC
Variance at Completion VAC = BAC -EAC
51 © Asoka Perera
CE 4250 Construction Project Management
COST CONTROL
Systems in Current Use
Earned Value Technique
• Do the assignment on Earned Value – Two case
scenarios
• Answers to the case studies
– Scenarios video 1
– Scenarios video 2
– Scenarios video 3
– Scenarios video 4
• Case scenarios with MS Project
52 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
3.2.3 Forecasting
Use of Earned Value
• ETC based on new estimate.
• ETC based on atypical variances
• EAC using a new estimate
• using remaining budget
• EAC using CPIC
53 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
54 © Asoka Perera
CE 4250 Construction Project Management
3.2 Cost Control – Tools and Techniques
55 © Asoka Perera
CE 4250 Construction Project Management
3.3 Cost Control – Outputs
56 © Asoka Perera
CE 4250 Construction Project Management
3.3 Cost Control – Outputs
THANK YOU
60 © Asoka Perera