EVA numerical: Koteshwor-Kalanki road subgrade

Given: length = 8.7 km, duration = 1.5 years = 18 months, rate = Rs 1.5 million/km. Review after 6 months: work done = 2.3 km, actual cost = Rs 4.6 million.

Budget at completion

$$BAC = 8.7 \times 1.5 = 13.05\ \text{million}$$

Planned value (uniform progress): 6 of 18 months planned

$$PV = \frac{6}{18} \times 13.05 = 4.35\ \text{million}$$

(planned length = 8.7/3 = 2.9 km)

Earned value

$$EV = 2.3 \times 1.5 = 3.45\ \text{million}$$

Actual cost $AC = 4.6$ million

Variances and indices

$$\begin{aligned} CV &= EV - AC = 3.45 - 4.6 = -1.15\ \text{million} \\ SV &= EV - PV = 3.45 - 4.35 = -0.90\ \text{million} \\ CPI &= 3.45/4.6 = 0.75 \\ SPI &= 3.45/4.35 = 0.793 \\ EAC &= BAC/CPI = 13.05/0.75 = 17.4\ \text{million} \\ ETC &= EAC - AC = 12.8\ \text{million} \\ VAC &= 13.05 - 17.4 = -4.35\ \text{million} \end{aligned}$$

Percent complete = 3.45/13.05 = 26.4% against 33.3% planned.

Answer: PV = Rs 4.35 M, EV = Rs 3.45 M, AC = Rs 4.6 M, CV = −Rs 1.15 M, SV = −Rs 0.90 M, CPI = 0.75, SPI = 0.79, EAC = Rs 17.4 M.

Conclusion: The contractor is both over budget (it spends Rs 1.33 for every Rs 1 of work earned) and behind schedule (only 2.3 km against 2.9 km planned). If the trend continues, the final cost will be Rs 17.4 M, Rs 4.35 M above the budget, and the project will take longer than 18 months (about 18/0.793 = 22.7 months). The performance is poor; the client should demand a recovery plan, more resources and better management.