Using Earned Value Management in Your Construction Audit Reports

Learning Objectives

• To inspect what formulas exist in project management methodology to help you get a true picture of project progress.
• To analyze how to appreciate the information project management could/should supply.
• To recognize the fundamental principles one needs to have in place to make EVM work.
• To realize how powerful the EVM tool is in managing your projects.
• To determine the performance and cost of a project.

Course Description

This webinar is a part of the Construction Audit Series by Denise Cicchella!

Planning, controlling, and monitoring progress are key management functions for the effective implementation of construction projects. Commonly used instruments enabling the performance of these functions include schedules and budgets, often in the form of a cost estimate. They are created at the initial planning stage to monitor and control cost and time deviations. Moreover, popular monitoring techniques are, for example, observation of milestones and comparative analysis of actual versus planned costs. One such monitoring technique is the Earned Value Method (EVM) - which, despite its benefits, remains relatively unused in construction projects.

How much is that delay costing? 

At the end of the day, how much over budget will we be? 

How much more do we owe on this project? These are all normal questions of Upper Management.

Using Known Earned Value Management Formulas, you can answer these questions.

EVM is a well-known method that affords the collection and analysis of comprehensive amounts of information about a project’s progress. It is well known and has been the subject of research aimed at its further development. It 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.

This CPE Auditing webinar will help you to understand everything about Earned Value Management (EVM). Speaker Denise Cicchella will also assist attendees in using Earned Value Management in the Construction Audit Reports.

This course covers the following Major Topics: 

• Introduction
• Goal of EVM
• Applications
• CPI and SPI trends
• Budget at Completion
• Estimate at Completion
• Variance at Completion

Note: Students should come to class with an open Excel Spreadsheet to assist with exercises.

Overview

• What will it allow you to do?

  14 mins
• Key formulas

  25 mins
• Earned value formula

  36 mins
• What is the Cost Variance on the deck

  54 mins
• CPI and SPI trends

  76 mins
• Estimate to complete

  93 mins