Factors Affecting Implementation of Earned Value Management (EVM) in Construction Projects

Earned Value Management (EVM) has emerged as an effective project monitoring and control method while the construction industry has lagged other industries, such as defense and aerospace, in adopting it. This research explored the barriers to effective EVM implementation for construction projects by investigating the factors affecting EVM adoption and utilization. The effort included a literature review and personal communications to obtain initial industry input to devise and distribute a survey questionnaire. Out of a total of 354 valid returns, 203 were familiar with (aware of) EVM while the remaining 151 respondents were not. Further, 77 respondents out of the group familiar with EVM indicated that they had not implemented EVM in their projects. Two categorical dependent variables and several categorical independent variables formulated from the survey data were statistically analyzed using cross tabulation and logistic regression. It was found that the first dependent variable (Is EVM implemented) was influenced by management commitment level, project budget range, availability of resources, extent of work breakdown structure (WBS) being aligned with schedule, difficulty of estimating earned value (EV), detail level of WBS, and accuracy of planned value (PV). The cost of EVM implementation was found to be the least important hindrance to its adoption. It was further concluded that the second dependent variable (how effectively is EVM implemented) was influenced by the extent execution follows schedule baseline, accuracy of PV, availability of resources, management commitment level, difficulty of estimating EV, extent WBS is aligned with schedule, and type of contract. The findings of the study were discussed and validated by a focus group of construction industry experts to close out this research effort. Interest in and support by senior management was identified as the most influential factor for EVM adoption and effective implementation.