Cost Overrun in Residential Projects

The construction industry faces significant challenges in managing cost and schedule performance due to material price fluctuations, labor variability, design modifications, and complex project planning. Accurate monitoring of budget versus actual costs is critical, particularly in residential building projects ranging from G+2 to G+5. Earned Value Management (EVM), integrated with digital project management tools such as Primavera P6, provides a quantitative framework for assessing project performance by linking scope, cost, and schedule data. This literature review synthesizes studies from 2020–2024, examining the application of Primavera P6 for cost-loaded scheduling, progress tracking, and EVM metric computation (PV, EV, AC, CV, SV, CPI, SPI). The review highlights case studies demonstrating the effectiveness of quantity-based progress measurement, weekly actual cost updates, and baseline management in predicting cost overruns and schedule slippages. Challenges such as data entry inconsistencies, material price volatility, and misestimation of progress are discussed, along with resource optimization and time–cost trade-off strategies. Best practices for accurate budget versus actual analysis are identified, including cost-loading, baseline locking, integration with site accounting systems, and regular variance monitoring. The review concludes with identified research gaps, including the integration of AI/ML for predictive forecasting, multi-project tracking, and standardized methods for material price adjustment. This study provides a comprehensive framework for practitioners and researchers aiming to improve cost and schedule performance evaluation in residential construction using Primavera P6 and EVM.