Project Management

Project Management Central

Please login or join to subscribe to this thread

Topics: Construction, Earned Value Management, Resource Management
EVM & Construction Indirects
Does anyone use EVM with their indirects in the construction environment? If so, in what manner? My thought is to do it as cost/hour planned vs actual over time. Please let me know your thoughts. Thank you.
Sort By:
If you only include discretionary work efforts in EV, in person hours, you can better monitor and control the progress of work. Level of effort work and indirects only diffuse the picture, and could be monitored differently.

In parallel, the CFO might ask you about including all costs, in currency, to be able to do his own reasoning. They rarely do because they look at expenditures as cost (from contractor invoices), which are often delayed or disputed and therefor do not give a good indicator for actual cost.
Pete -

Indirect costs would get factored into your EVM calculations for the overall project when assessing ETC and EAC, but I don't know that I'd use EVM only for indirect costs ever for the reasons Thomas has shared.

Kiron
...
1 reply by Pete Chamberlain
Jun 04, 2020 3:49 PM
Pete Chamberlain
...
Indirects that I am referring to would be operators, laborers, etc. Also misc task such as pipe testing.
Jun 04, 2020 3:37 PM
Replying to Kiron Bondale
...
Pete -

Indirect costs would get factored into your EVM calculations for the overall project when assessing ETC and EAC, but I don't know that I'd use EVM only for indirect costs ever for the reasons Thomas has shared.

Kiron
Indirects that I am referring to would be operators, laborers, etc. Also misc task such as pipe testing.
...
1 reply by Kiron Bondale
Jun 04, 2020 6:17 PM
Kiron Bondale
...
Thanks for the clarification, Pete. The approach you've stated would work so long as you can tie it back to the work which has actually been accomplished by the indirects otherwise you are just calculating a financial variance...

Kiron
Jun 04, 2020 3:49 PM
Replying to Pete Chamberlain
...
Indirects that I am referring to would be operators, laborers, etc. Also misc task such as pipe testing.
Thanks for the clarification, Pete. The approach you've stated would work so long as you can tie it back to the work which has actually been accomplished by the indirects otherwise you are just calculating a financial variance...

Kiron
...
1 reply by Pete Chamberlain
Jun 04, 2020 7:25 PM
Pete Chamberlain
...
Thanks. I appreciate the feedback.
Jun 04, 2020 6:17 PM
Replying to Kiron Bondale
...
Thanks for the clarification, Pete. The approach you've stated would work so long as you can tie it back to the work which has actually been accomplished by the indirects otherwise you are just calculating a financial variance...

Kiron
Thanks. I appreciate the feedback.

Please login or join to reply

Content ID:
ADVERTISEMENTS

"You cannot prevent the birds of sorrow from flying over your head, but you can prevent them from building nests in your hair."

- Chinese Proverb

ADVERTISEMENT

Sponsors

Vendor Events

See all Vendor Events