--- title: "EVA; parking meters installation" subject: "Project Engineering" chapter: 4 key: "semester_7/project_engineering:eva-numerical-parking-meters-b78" source: https://www.bctengineer.com/q/semester_7/project_engineering/eva-numerical-parking-meters-b78 site: BCT Engineering --- # EVA; parking meters installation Project Engineering · Chapter 4: Project Implementation and Controlling - Asked in: 2078 Bhadra, 8 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-numerical-parking-meters-b78 - Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-4 ## Question A company has signed a fixed cost contract to install 1000 new parking meters at a cost of Rs 20,00,000. Old parking meters have to be removed from their stands and replaced with new ones. The cost of doing this is Rs 2000 per meter. It is estimated that 25 meters are installed each day. On the review date at day 18 only 400 meters have been installed and it was found that the actual cost of work performed equals Rs 10,00,000. Find out all the parameters of earned value analysis and comment on the performance status of this project. ## Short answer Based on BAC Rs 20,00,000 at Rs 2,000 per meter, planned 25 meters/day, review at day 18: PV = 25×18×2000 = Rs 9,00,000, EV from 400 meters installed = Rs 8,00,000, AC = Rs 10,00,000. SV = –Rs 1,00,000, CV = –Rs 2,00,000, SPI = 0.89, CPI = 0.80, EAC = Rs 25,00,000. Project is behind schedule and over budget. ## Answer #### Given data - Fixed contract: 1000 meters at Rs 20,00,000, i.e. Rs 2,000 per meter, so $BAC = 20{,}00{,}000$. - Planned rate = 25 meters/day, so the planned duration = 1000 / 25 = 40 days. - Review at day 18: meters installed = 400; $AC = 10{,}00{,}000$. #### Calculation $$ \begin{aligned} PV &= (25 \times 18) \times 2{,}000 = 450 \times 2{,}000 = 9{,}00{,}000 \\ EV &= 400 \times 2{,}000 = 8{,}00{,}000 \\ AC &= 10{,}00{,}000 \end{aligned} $$ $$ \begin{aligned} SV &= EV - PV = 8{,}00{,}000 - 9{,}00{,}000 = -1{,}00{,}000 \\ CV &= EV - AC = 8{,}00{,}000 - 10{,}00{,}000 = -2{,}00{,}000 \\ SPI &= \frac{EV}{PV} = \frac{8{,}00{,}000}{9{,}00{,}000} = 0.89 \\ CPI &= \frac{EV}{AC} = \frac{8{,}00{,}000}{10{,}00{,}000} = 0.80 \\ EAC &= \frac{BAC}{CPI} = \frac{20{,}00{,}000}{0.8000} = 25{,}00{,}000 \\ ETC &= EAC - AC = 25{,}00{,}000 - 10{,}00{,}000 = 15{,}00{,}000 \\ VAC &= BAC - EAC = 20{,}00{,}000 - 25{,}00{,}000 = -5{,}00{,}000 \\ \text{Forecast duration} &= \frac{40}{SPI} = \frac{40}{0.8889} = 45.0\ \text{days} \end{aligned} $$ #### Comment - **Schedule:** SV = -1,00,000 and SPI = 0.89, so the project is **behind schedule**; only 89 % of the planned work is done. If the same rate continues, the duration becomes 45.0 days against 40 days planned. - **Cost:** CV = -2,00,000 and CPI = 0.80, so the project is **over budget**; each rupee spent has earned Rs 0.80 of work. - **Forecast:** EAC = Rs 25,00,000 against BAC = Rs 20,00,000, i.e. a final overrun of Rs 5,00,000. Only 400 meters are installed against 450 planned (50 meters behind), and the actual cost per meter installed is 10,00,000 / 400 = Rs 2,500 against the budgeted Rs 2,000 (25 % higher). At the present rate the installation needs about 45 days instead of 40 days. Action: add installation crews, check why the cost per meter is high (rework, transport, idle labour) and control it, since the contract is fixed-cost and the overrun is borne by the company. **Answer: PV = Rs 9,00,000; EV = Rs 8,00,000; AC = Rs 10,00,000; SV = Rs -1,00,000; CV = Rs -2,00,000; SPI = 0.89; CPI = 0.80; EAC = Rs 25,00,000; behind schedule and over budget.** ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. 1000 meters at 25 per day gives a planned duration of: A. 25 days B. 18 days C. 50 days D. 40 days Answer: D. Duration = 1000/25 = 40 days; BAC = 20,00,000 (Rs 2,000 per meter). (Key point: Planned duration and BAC) 2. PV at day 18 is: A. Rs 9,00,000 B. Rs 8,00,000 C. Rs 10,00,000 D. Rs 7,20,000 Answer: A. Planned meters = 25 x 18 = 450; PV = 450 x 2,000 = 9,00,000. (Key point: PV at day 18) 3. 400 meters installed at the budgeted Rs 2,000 each gives EV of: A. Rs 10,00,000 B. Rs 9,00,000 C. Rs 8,00,000 D. Rs 20,00,000 Answer: C. EV = 400 x 2,000 = 8,00,000; the 10,00,000 is the actual cost. (Key point: EV) 4. SPI and CPI are: A. SPI = 0.80, CPI = 0.89 B. SPI = 0.89, CPI = 0.80 C. SPI = 1.12, CPI = 1.25 D. SPI = 0.89, CPI = 1.25 Answer: B. SPI = 8/9 = 0.89 and CPI = 8/10 = 0.80. (Key point: SPI and CPI) 5. Actual cost per installed meter and the forecast EAC are: A. Rs 2,000 and Rs 20,00,000 B. Rs 2,500 and Rs 20,00,000 C. Rs 2,500 and Rs 25,00,000 D. Rs 2,250 and Rs 22,50,000 Answer: C. 10,00,000/400 = Rs 2,500 (25% above budget); EAC = 20,00,000/0.8 = 25,00,000, borne by the company under a fixed-cost contract. 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