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Topics: Earned Value Management
EVA
Network:22


I will appreciate so much if you can help me explaining how to make the earn value curve in lump sum contracts. In this case, as the employer I don't have the exacly costs of each activity and also I think it's not necessary for me to know cost variance as the contract define a fixed price for the deliveries and will just change if the contractor asks for a claim. So, in this case, the important is just to make an evaluation of the physical progress. In this way, in this type of contracts its just important to control the physical progress and contract claims withaout need a EVA analysis. Do you agree? Can you make some comments on this? Thank you in advance for your help. Best regards,
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Network:750



Guilherme -

In my way of thinking, It's just important to control the physical progress, wich is related to EVA. You can transform their units in order to manage both of them.

Giancarlo.
Network:1882



My recommendation is taken a look to Earned Schedule Management.
Network:652



Hi Guilherme,

In this case I agre with Giancarlo reply for measuring physical progress and converting/transforming them into EVA Curve. You can establish some weightages on project milestone and major activities to fix base line curve and then measure physical progress percentage and multiplied with established weightages to arrive at actual progress curve. Hope this clarify you. All the best!!
Network:2420



Well, you could require lump sum contractors to use EVA and share their reports, in the contract provisions. That's why EVA was invented by DoD in the first place, to increase insights into defense contractor's progress and performance.
Network:53



Performing an EVA on task level is quite time intensive, even if you use tools like MS Project.
But the Earned Value Analysis is a great tool to control and report the project progress. Your customer does not care about your costs, therewith the CPI, CV etc. should not be of interest for him. The SPI is definitely of interest. Also the diagram. EV vs. time and PV vs. time. I would also recommend to calculate the time based SPI, since this KPI is more precise than the standard SPI.
I use an Excel Sheet to calculate the most important KPIs for my projects. You can download it here:
https://www.projectmanagement.com/delivera...lysis-Worksheet

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