Evaluation of Building Projects Using Earned Value Technique
AbstractThis study evaluates building construction projects using the Earned Value Analysis technique, the Experimental Approach, and Value Concept Analysis. The aim was to compare the cost incurred for an identified amount of work done on a project with the cost budgeted for the same work. The results were used to calculate the Cost Performance Index (CPI) for each project. The experimental approach was used to detect the true cost-effect relationships, while the value concept analysis was used to estimate the value of selected projects as they relate to cost. Two methods were adopted in collecting the empirical data for the study. The first involves the review of relevant literature to provide a sound background to the study. The other method involves the collection and analysis of data obtained from records of the construction firms sampled. Data obtained from each method was calculated, analyzed and presented in tables. It was discovered from analyses that projects that were abandoned for some time before completion has radios that indicate a low level of Value Engineering in their design and construction. For example, projects like the Adamawa Plaza and the Eagle square in Abuja show favorable ratio of 1 and 0.9 respectively, which is less than 1. The results further show that for Adamawa state stadium in Yola, the CPI is far much greater that 1.0 it shows a value of 5.3. This denoted that only about 20 percent of the total contract work was done. The value of money spent is far greater than the work done. Other projects like the Federal University of technology entrance road gave a value rating of unity (1.0) this implies that the project is fully completed and the cost completely paid hence the value of 1.0. On the other hand, it was observed that the total cost of the Eagle Square in Abuja was increased by 14% before the completion of the project. This increase in cost affected the value of the project as the cost performance index reduced to 0.8 instead of 1.0 as the case would have been. Finally, the study revealed that the cost of a project is tied to its function. Abandoned projects always lead to increase in the cost of completion whereby the Cost Performance Index (CPI) of such projects increases. The implication of this is that there is gross misuse of money. Keywords; Value engineering, Value analysis, Value concept, Function Analysis, Cost performance index.
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