Project Management

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FP-EPA Contracts - EVMS

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Jose Antonio Porto Rey-Cabarcos Navantia India Managing Director| Navantia SA SME New Delhi, Delhi, India
In FP-EPA Contracts, does BAC ($) subject to annual adjustments due to labour variances even though the baseline in hours remains fix?
In a Programs, the engineering and construction projects are estimated in hours, i.e.: baseline is in hours. The Budget is developed applying transformation rules to pass from hours to $.
As EVMS indicators are calculated in $, if you don't adjust the BAC according to labour variances or whatever other applicable variable, although you execute the Program according to the Plan, the SPI at the end of the Program will be less than the reality.

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