Earned Value Management of Commercial Project: A Case Study Of An LPG Bottling Plant

Earned Value Management (EVM) is an important project management tool that integrates cost and schedule for effective assessment of the project performance. The comprehensive literature review indicated that EVM is a widespread tool in traditional residential projects with straightforward budgets and schedules. However, commercial implementation is still underestimated. The lack of well-documented success stories and case studies of the application of EVM in commercial projects is another contribution to the hesitation of the stakeholders. Therefore, one of the primary goals of the current research is to illustrate how the EVM contributes to the accuracy of the forecast, preventive decision-making, and successful project implementation in commercial construction ventures. This research paper represents EVM analysis applied to the commercial construction project, a case study of the Liquified Petroleum Gas (LPG) bottling plant in Rasayani, Maharashtra, India. The initially planned budget was ₹87,478,725 and be implemented in 10 months. However, due to design errors, torrential rains, and inflation-induced cost increases, the project lasted for 14 months, consuming ₹101,822,725. The project was divided into 4 phases for EVM analysis: April – June 2023, July-September 2023, October 2023 – January 2024, and February – May 2024. Cost Performance Index (CPI), Schedule Performance Index (SPI), Cost Variance (CV), Schedule Variance (SV) are used to measure performance. The performed analysis identified that CPI and SPI ranged from 0.60 to 0.91 and 0.41 to 1.00, respectively, indicating cost and schedule overruns in all phases. The findings favor the wider use of EVM within commercial projects since they confirm its high effectiveness in project control and successful completion.