International Journal of Civil Engineering and Technology (IJCIET)

Volume 8, Issue 1, January 2017, pp. 357362, Article ID: IJCIET_08_01_040

Available online at http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=1
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
IAEME Publication

A CASE STUDY ON TIME AND COST DRIVEN

FACTORS OF COMMERCIAL COMPLEX BY
USING EVA (EARNED VALUE ANALYSIS) TOOL
Sai Murali Krishna Reddy.Raya
M.Tech Student, Department of Civil Engineering,
K L University, Vaddeswaram-522502, A.P, India

SS. Asadi
Associate Dean-Academics, Civil Engineering Department,
K L University, Vaddeswaram - 522 502 (A.P)

S.S Bhanu Prakash

Asst. Professor, Department of Civil Engineering,
K L University, Vaddeswaram-522502, Andhra Pradesh, India

ABSTRACT
Objectives: Now a days several business complexes are being created. People with
busy time schedule show a ton of interest in visiting these malls, so that lots of your time is
optimally utilized and each item is formed offered within the business complicated.
Methods: There exist many reasons that are accountable for this cost and time overruns.
This paper stands to define the primary causes of cost and time driven factors in building
(construction) sector &potency function manner, forward future add addressing these
overruns. Findings: Building (construction) manufacturing is very vibrant region and
shows the significant part within the growth of a Nation, later in Republic of India,
construction engineering started a zoom then its freedom. However, construction industry
in Republic of India is facing prolonged issues as well as poor depiction of your price
(cost)& time, over heads of construction , poor efficiency and over reliant on manpower. Of
these trials, is taken into account as an important issue.
Key words: Cost Overrun, Time Overrun, Eva (Earned Value Analysis), Construction.
Cite this Article: Sai Murali Krishna Reddy. Raya, SS. Asadi and S.S Bhanu Prakash, A
Case Study On Time and Cost Driven Factors of Commercial Complex by Using Eva
(Earned Value Analysis) Tool. International Journal of Civil Engineering and Technology,
8(1), 2017, pp. 357362.
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 Sai Murali Krishna Reddy. Raya, SS. Asadi and S.S Bhanu Prakash

1. INTRODUCTION
A lot of research readings & studies have been done to recognize the reasons of the overruns of
cost and time in construction projects, leads to interlude in the completion of project task. Time and
Cost are the lifelines of each and every project task1. It stands of supreme importance to study,
analyze and evaluate the common factors leading to these constraints and suggest the best
mitigation measures to overcome cost and time overrun constraints. During the phase of
construction it is the prime responsible duty of the project managers to monitor cost & time and
avoid the overruns of the both cost and time2. Due to these limitations, this paper discusses the
effective cost and time control overrun practices in construction industry3.
The one way to avoid the loss was using the necessary tecqunices and softwares related to the
cost and time overruns some of the tool which is used from last few decades is EVA has been
executed, and some project control methods are the MS Project, Primavera4. P6, but still the
construction projects static undergo to the time overrun and cost overrun in present-day there have
done lot of research lot of surveys and studies are identified for finding out the most influencing
factors of cost overrun and time overrun, and it is found that the most variable causing the
construction delays are the cost and time overruns the factors relating to these are It is most
important to study, analyze and evaluate the common factors leading to the cost and time overruns
these constraints and suggest the best and suitable mitigation measures to overcome overrun
constraints such as time and cost5. The time and cost are the lifelines of every and any project in
the construction sector, the aim of the General managers, and other professionals of the project to
control the time and cost and make ensure that the projects finish on time without any time overrun
and within their cost (budget), without any cost overruns, with perfect management principles,
without the deviations in the project6. It is a most complicated task with heavy risks deal the
project without time overrun and cost overrun by the Project managers and asst. project managers.
The effective cost overrun and Time overrun has received much attention in the construction
industry.
1.1. Problem identification: is the heart of a pursuit because it helps us to see the factors that are
chargeable for the time and price overruns.
Once implementation begins, a projects costs seldom stay static. As more data becomes
offered the prices is also further outlined. Yet, even when a price has become firmly mounted,
there are various factors that will result in the value increasing. Delays are a major issue. Whatever
the reason, delays almost invariably increase budget prices.
1.1.2 Cost Overrun: The factors that result in projects being delayed or costing more than
originally planned are:
Poor Project Management
Design Changes
Inflation
Shortages of Material and Plant
Inappropriate Contractors
Funding Problems
Lack of proper training

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 A Case Study On Time and Cost Driven Factors of Commercial Complex by Using Eva (Earned Value
Analysis) Tool

1.1.3 Time Overrun: The factors that result in projects being delayed due to the time overrun are
as follows:
Low Skilled Manpower
Inexperience of Project Manager
Inaccurate evaluation of projects time/duration
Inaccuracy of Material Estimate
Lack of appropriate software
Complexity of Works
Lack of Experience in Similar Project

2. METHODOLOGY
2.1. EVA (EARNED VALUE ANALYSIS)
The EVA is an emerging tool in and around the construction for measuring the progress of the
project at every given idea of time, estimating its final cost and its finishing date and final cost,
and studying the changes of schedule and budget to proceed for a project.
Primarily EVA isa schedule tracking tool, to determine the schedule from price and also the
individual WBS earned value tasks that which are performed in time. Eva is very common in style,
engineering, construction and contract administration corporations as well as big design-
manufacturers like half firms, point time of evaluation
Planned Value
Earned Value
Actual Cost
Step1: Performance is assessed mathematically and expressed in Key Performance Indicators
They are:
So far exactly how much work SHOULD be done?
BCWS (Budgeted Cost of Work Scheduled)

So far exactly how much money ACTUALLY has been spent to progress of the project?
ACWP (Actual Cost of Work Performed)

So far whatever is the exact VALUE of the work that has been proficient?
BCWP (Budgeted Cost of Work Performed)

Step 2: Cost and Schedule Variance are the two primary measures of project progress.
This can be determined by:
Cost Variance (CV) =
Budgeted Cost of Work Performed (BCWP)Actual Cost of Work Performed (ACWP)

Schedule Variance(SV) =

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 Sai Murali Krishna Reddy. Raya, SS. Asadi and S.S Bhanu Prakash

Budgeted Cost of Work Performed (BCWP)-Budgeted Cost of Work Scheduled (BCWS)

If CV/SV = 0; then project is on the track
If CV/SV = +; then project is under budget and ahead of schedule
If CV/SV = -; then project is over budget and behind schedule
Step 3: Cost (price) and Schedule Performance Indices: Two indices that are useful for
communicating progress status are the CPI and SPI. They are determined by:

CPI (Cost Performance Index)

The factor of competence express the relationship between the value of the physical work
performed and actual costs expended.

CPI = BCWP/ACWP
Schedule Performance Index (SPI): The efficiency of the planned schedule factor signifying the
relationship between the value of physical work performed and the value of initial planned
schedule.
Schedule Performance Index (SPI) =
Budgeted Cost of Work Scheduled (BCWS)/Budgeted Cost of Work Performed (BCWP)
If, CPI and SPI=1, then the project is on budget and on the schedule.
If, CPI and SPI <1, then the project is behind the schedule and over budget.
If, CPI and SPI >1, then the project is ahead of schedule and under budget.
What is destined byBAC (Budget at Completion)is an original Estimate of Cost of the Completed
Project.
What is destined by EAC (Estimate at Completion) is an projection of the final costs of work at
project completion.
What is destined byEAC (Estimate at Completion) =BAC (Budget at Completion)/ CPI (Cost
Performance Index), Shown in Table 1.
Table 1 Earned Value Analysis

Budgeted
% Scheduled % Actual Scheduled cost Actual cost
cost (in BCWS BCWP
S.NO Work item completion completion (in lakhs) (in lakhs)
lakhs)
Earth work-
Excavation 179
1 100 100 179 204 179 179
Filling Pile breaking
Total cost of concreting
4193
2 including formwork 98 91 4193 4329 4109.14 3815.63
Total cost of post
220
3 tension work 94 89 197 205 206.8 195.8
Masonry work 519
4 90 85 487 450 467.1 441.15
Internal plaster
5 481 82 80 407 420 394.42 384.8
Water proofing 297
6 63 20 69 75 187.11 59.4
Doors
7 1897 46 55 956 1010 872.62 1043.35
Windows 815
8 43 50 367 450 350.45 407.5
Vitrified tiles
9 6056 38 30 2120 2725 2301.28 1816.8
Toilet finishing 284
10 35 30 128 100 99.4 85.2
Terrace and paving 465
11 - - - - - -

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 A Case Study On Time and Cost Driven Factors of Commercial Complex by Using Eva (Earned Value
Analysis) Tool

Staircase finishing
12 45 - - - - - -

Grills and railing 261 -

13 - - - - -

Painting 812
14 - - - - - -
M.S.shutter 62
15 - - - - - -
Miscellaneous 145
16 - - - - - -
Total 16731
9103 9968 9167.32 8428.63

4. RESULTS&CALCULATIONS
What is destined by BCWS = Budgeted cost for work scheduled
What is destined by BCWP =Budgeted cost of work performed
What is destined by ACWP =Actual cost of work performed
BAC (Budget at Completion) = Budgeted cost = 16731lakhs = 167.31 crores
1. Scheduled variance (SV)
= BCWP - BCWS
= 8428.63 9167.32
= -738.69 lakhs
Project is behind scheduled
2. Cost variance (SV)
= BCWP - ACWP
= 8428.63 9968= -1539.37 lakhs
Project is into cost overrun
3. Schedule Performance Index (SPI) =
= BCWP BCWS
= 8428.63 9167.32= 0.919
The Project is on behind scheduled
4. Cost performance index (CPI)
=BCWP ACWP
= 8428.63 9968
= 0.845 < 1
Project is on into cost overrun
5. Critical ratio (CR) = SPI* CPI
= 0.919 * 0.845
= 0.7765 < 1
Overall project performance is poor.
6. Estimate at completion (EAC) = BAC CPI
= 16731 0.845
= 198 crores
7. Cost escalation = EAC Budgeted Cost
= 198 167.37
Cost escalation =30.69 crores

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 Sai Murali Krishna Reddy. Raya, SS. Asadi and S.S Bhanu Prakash

8. Construction started on Sept-2013 and the expected completion of project is on April-2016. But
due to the time overrun the project is expected to be completed by April-2018
Time escalation = 2 years

5. CONCLUSIONS
Materials should be managed by using ABC (Always Better Control) technique in which class-A
items which cost 70% cost of materials should be stored very less, class-B items which cost 20%
cost should be stored in minimum quantity and class-c items which cost 10% cost should be stored
maximum. By this they can save maximum cost as class-A items are frequently purchased from 3-
4 sources so max negotiations can be done. The planning and Scheduling plays a key role in cost
reduction as the plan which is prepared by the competent person i.e. project manager will be in
such a way that there wont be ambiguous nature of activities which has to be executed. As there is
no confusion there will be minimum chances to waste resources and materials. Planning and
Scheduling can be done with the help of software packages such as Microsoft Project, Primavera,
Asta Power Project. To avoid confusions at site that what are the activities to concentrate and to
avoid confusion in the mind of the labor. To ensure whether the labor have good knowledge on the
activity that they are executing so that no material and resources are over used. By this we can
control cost. Inventory control also plays a crucial role in minimizing the cost. If we maintain good
inventory control 10% of the cost can be reduced. It is the responsibility of the contractor to
appoint a experienced subcontractor who have the experience in similar type of works. This
subcontractors credentials should be checked by contractor and client. After client gives permission
then only the subcontractor should be appointed. The reliability of the supplier is very important.
We have to check whether the supplier can meet the materials demand which is needed at site. If he
cannot meet the demand then we have to choose other supplier. This can save the cost as we can
negotiate with the supplier and reduce the cost.

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