---
title: "Earned value analysis for performance control"
subject: "Construction Management"
chapter: 7
key: "semester_8/construction_management:eva-performance-control"
source: https://www.bctengineer.com/q/semester_8/construction_management/eva-performance-control
site: BCT Engineering
---

# Earned value analysis for performance control

Construction Management · Chapter 7: Controlling Project Integration and Work

- Asked in: 2075 Bhadra, 6 marks; 2074 Bhadra, 4 marks; 2071 Bhadra, 4 marks; 2070 Bhadra, 4 marks; 2079 Jestha, 3 marks; 2072 Asoj (asked 6 times)
- Video: [What is Earned Value Management? Example Formulas | EV, PV, SV, CV, AC](https://www.youtube.com/watch?v=9g55AwVQS64) — Project Management Academy
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/eva-performance-control
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-7

## Question

Discuss the use of earned value analysis (EVA) for performance control in a project, with example.

## Short answer

Earned value analysis compares planned value, earned value and actual cost to measure schedule and cost performance. For example, with BAC Rs 1,000,000, PV Rs 400,000, 35% complete and AC Rs 380,000, EV is Rs 350,000, giving CV -30,000, SV -50,000, CPI 0.921, SPI 0.875 and EAC Rs 1,085,714, so the project is over budget and behind schedule.

## Answer

**Earned value analysis (EVA)** is a method of measuring project performance by comparing three quantities at a given date: the work planned, the work actually done and the money actually spent. It integrates scope, schedule and cost in one measure.

#### Basic terms
- **BAC** – budget at completion (total planned cost).
- **PV** (BCWS) – planned value: budgeted cost of work scheduled to date.
- **EV** (BCWP) – earned value: budgeted cost of work actually completed to date (= % complete × BAC).
- **AC** (ACWP) – actual cost of the work done to date.

#### Performance indicators
| Indicator | Formula | Meaning |
|---|---|---|
| Cost variance CV | EV − AC | negative = over budget |
| Schedule variance SV | EV − PV | negative = behind schedule |
| Cost performance index CPI | EV / AC | below 1 = cost overrun |
| Schedule performance index SPI | EV / PV | below 1 = delayed |
| Estimate at completion EAC | BAC / CPI | forecast total cost |
| Estimate to complete ETC | EAC − AC | cost still needed |
| Variance at completion VAC | BAC − EAC | final over/under budget |

#### Use in control
- It gives an early warning of cost overrun and delay, before they become large.
- It shows whether a delay or overrun is a trend (CPI, SPI) and helps to forecast the final cost and completion date.
- It guides corrective actions: more resources, rescheduling, value engineering, changes in methods.
- It gives an objective basis for reports to the client and for payment.

#### Example
A road project has BAC = Rs 1,000,000. At the end of month 4: PV = Rs 400,000, work done is 35%, so EV = Rs 350,000, and AC = Rs 380,000.

- CV = 350,000 − 380,000 = −30,000 (over budget).
- SV = 350,000 − 400,000 = −50,000 (behind schedule).
- CPI = 350/380 = 0.921 and SPI = 350/400 = 0.875.
- EAC = 1,000,000 / 0.921 = Rs 1,085,714.

The project is both over budget and late, so corrective action (more crews, better productivity, cost control) is needed.

## Check yourself

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

1. Earned value analysis compares which three quantities at a date?
   A. Work planned, work actually done and money actually spent
   B. Labour, material and equipment
   C. Profit, loss and tax
   D. Design, drawing and estimate
   Answer: A. PV, EV and AC integrate scope, schedule and cost. (Key point: What EVA compares)

2. If EV is less than AC, then:
   A. CV is positive and the project is under budget
   B. CV is negative and the project is over budget
   C. SV is negative
   D. CPI is above 1
   Answer: B. CV = EV - AC; negative means over budget and CPI is below 1. (Key point: Cost variance)

3. SPI = EV / PV below 1 means:
   A. Ahead of schedule
   B. On budget
   C. Behind schedule
   D. Cost overrun
   Answer: C. SPI below 1 means less work is done than planned. (Key point: Schedule performance)

4. Using BAC = Rs 1,000,000 and CPI = 0.92, EAC is about:
   A. Rs 920,000
   B. Rs 1,085,714
   C. Rs 1,000,000
   D. Rs 1,920,000
   Answer: B. EAC = BAC / CPI = 1,000,000 / 0.92, about Rs 1,085,714. (Key point: Forecast EAC)

## Related in Construction Management

- [EVA numerical with five activities at day 5](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aeva-numerical-2070-magh) — Construction Management, chapter 7
- [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
- [EVA numerical: Koteshwor-Kalanki road subgrade](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aeva-numerical-sinoma-road) — Construction Management, chapter 7
- [Material productivity control](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Amaterial-productivity-control) — Construction Management, chapter 7, asked 5×
- [Work scope control](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Awork-scope-control) — Construction Management, chapter 7, asked 3×

## Related in other subjects

- [Cost control need; earned value; EVA approach](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Acost-control-necessary-eva-approach) — Project Engineering, chapter 4
- [Short note: Earned value analysis](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aearned-value-analysis-note) — Project Engineering, chapter 4
- [Earned value management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aevm) — ICT Project Management, chapter 9
- [Cost control; EVA 15 houses in 3 months](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aeva-houses-15-in-3-months) — Project Engineering, chapter 4