---
title: "EVA application; 35 days, Rs 8,00,000 spent"
subject: "Project Engineering"
chapter: 4
key: "semester_7/project_engineering:eva-applicable-monitoring-numerical-b82"
source: https://www.bctengineer.com/q/semester_7/project_engineering/eva-applicable-monitoring-numerical-b82
site: BCT Engineering
---

# EVA application; 35 days, Rs 8,00,000 spent

Project Engineering · Chapter 4: Project Implementation and Controlling

- Asked in: 2082 Bhadra, 2+6 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/project_engineering/eva-applicable-monitoring-numerical-b82
- Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-4

## Question

How is earned value analysis applicable for monitoring the performance of a construction project? A project has a planned budget of Rs 10,00,000 and a schedule of 50 days. During its implementation you have monitored the following data: (i) have so far worked for 35 days; (ii) Rs 8,00,000 already spent; (iii) 60% of work has been accomplished. Perform EVA and comment on the performance of the project.

## Short answer

EVA converts physical progress to monetary value to compute PV, EV, AC, then variances and indices for schedule and cost performance. Here, PV=7,00,000, EV=6,00,000, AC=8,00,000; SPI=0.86, CPI=0.75, so project is behind schedule and over budget with EAC Rs 13,33,333.

## Answer

#### Applicability of EVA for monitoring

EVA is suitable for monitoring a construction project because it measures performance with one common unit, money. At every review the planned value (PV), earned value (EV) and actual cost (AC) are found. From them the schedule variance, cost variance and the SPI and CPI show whether the project is ahead or behind and over or under budget, and the EAC forecasts the final cost. Since the physical progress is converted to a value, the cost and time performance of different activities can be added and compared with the baseline at any date.

#### Given data

BAC = Rs 10,00,000; planned duration = 50 days; at day 35: progress = 60 %, cost spent = Rs 8,00,000. Planned work is assumed uniform with time.

#### Calculation

$$
\begin{aligned}
PV &= \frac{35}{50} \times 10{,}00{,}000 = 7{,}00{,}000 \\
EV &= 0.60 \times 10{,}00{,}000 = 6{,}00{,}000 \\
AC &= 8{,}00{,}000
\end{aligned}
$$

$$
\begin{aligned}
SV &= EV - PV = 6{,}00{,}000 - 7{,}00{,}000 = -1{,}00{,}000 \\
CV &= EV - AC = 6{,}00{,}000 - 8{,}00{,}000 = -2{,}00{,}000 \\
SPI &= \frac{EV}{PV} = \frac{6{,}00{,}000}{7{,}00{,}000} = 0.86 \\
CPI &= \frac{EV}{AC} = \frac{6{,}00{,}000}{8{,}00{,}000} = 0.75 \\
EAC &= \frac{BAC}{CPI} = \frac{10{,}00{,}000}{0.7500} = 13{,}33{,}333 \\
ETC &= EAC - AC = 13{,}33{,}333 - 8{,}00{,}000 = 5{,}33{,}333 \\
VAC &= BAC - EAC = 10{,}00{,}000 - 13{,}33{,}333 = -3{,}33{,}333 \\
\text{Forecast duration} &= \frac{50}{SPI} = \frac{50}{0.8571} = 58.3\ \text{days}
\end{aligned}
$$

#### Comment

- **Schedule:** SV = -1,00,000 and SPI = 0.86, so the project is **behind schedule**; only 86 % of the planned work is done. If the same rate continues, the duration becomes 58.3 days against 50 days planned.
- **Cost:** CV = -2,00,000 and CPI = 0.75, so the project is **over budget**; each rupee spent has earned Rs 0.75 of work.
- **Forecast:** EAC = Rs 13,33,333 against BAC = Rs 10,00,000, i.e. a final overrun of Rs 3,33,333.
- **Action:** find the causes (low productivity, idle equipment, material delay, wastage), add resources or shifts on critical activities, tighten supervision and cost control, and revise the plan with the client.

**Answer: SV = Rs -1,00,000, CV = Rs -2,00,000, SPI = 0.86, CPI = 0.75; behind schedule and over budget; EAC = Rs 13,33,333.**

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is EVA suitable for monitoring a construction project?
   A. It ignores cost and looks at time only
   B. It uses only the actual cost
   C. It needs no baseline
   D. It converts physical progress to money so cost and time can be compared with the baseline
   Answer: D. EVA measures everything in one unit, money, so activities can be added and compared with the baseline at any date. (Key point: Why EVA suits construction)

2. For BAC = Rs 10,00,000, 50 days and status at day 35 (uniform plan), PV is:
   A. Rs 7,00,000
   B. Rs 6,00,000
   C. Rs 8,00,000
   D. Rs 5,00,000
   Answer: A. PV = 35/50 x 10,00,000 = 7,00,000. (Key point: Finding PV)

3. With 60% work done and AC = Rs 8,00,000, EV and CPI are:
   A. EV = 8,00,000, CPI = 0.75
   B. EV = 6,00,000, CPI = 1.33
   C. EV = 6,00,000, CPI = 0.86
   D. EV = 6,00,000, CPI = 0.75
   Answer: D. EV = 0.6 x 10,00,000 = 6,00,000 and CPI = 6,00,000/8,00,000 = 0.75. (Key point: Finding EV and CPI)

4. What do SPI = 0.86 and CPI = 0.75 with EAC = Rs 13,33,333 indicate?
   A. Ahead of schedule, over budget
   B. Behind schedule and over budget; final overrun about Rs 3,33,333
   C. Behind schedule but under budget
   D. On schedule and on budget
   Answer: B. Both indices are below 1, and EAC = BAC/CPI = 13,33,333 exceeds BAC by Rs 3,33,333. (Key point: Forecast and conclusion)

## Related in Project Engineering

- [EVA; 60 days, 25% work, 50% budget spent](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-60-days-half-budget) — Project Engineering, chapter 4
- [EVA; 60 days, 25% work, Rs 12,00,000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-60-days-25-percent) — Project Engineering, chapter 4
- [EVA and S-curve; Rs 30,00,000, 24 months](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-s-curve-24-months-c76) — Project Engineering, chapter 4
- [EVA; 10 days, 50 labour days at Rs 1000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-labour-days-1000) — Project Engineering, chapter 4, asked 2×
- [EVA; 10 days, 100,000, day 6, Rs 65,000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-numerical-day6-65000-k80) — Project Engineering, chapter 4
- [EVA; BCWS 9,50,000, BCWP 8,00,000, ACWP 10,00,000](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-bcws-bcwp-actual-s73) — Project Engineering, chapter 4

## Related in other subjects

- [Earned value analysis for performance control](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aeva-performance-control) — Construction Management, chapter 7, asked 6×
- [EVA numerical with bar schedule (A to F)](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aeva-numerical-2078-kartik) — Construction Management, chapter 7
- [Capitalised value from Rs 20,000 monthly rent](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-building-20000-rent-2078) — Construction Management, chapter 13
