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Earned Value, BCWP in P3

4 replies [Last post]
Thu, 2002-06-20 10:20
Gareth Jones
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I’m after some thoughts on Earned Value.

At the moment my Contractor progresses his progressed baseline each month. This will include updating % and most likely extending the Original duration of a task.

For this months Cost value report, I have asked the contractor to justify his % Complete Earned, for the cost code of EG; which is essentially the pilling works, and the work associated with it.

Within his programme, he has divided the east side into Zones, example EG1 being, Ground works in zone 1. These work activities as covered with level 3 tasks, resource loaded ( no cost). Summarising these activities is a hammock, which contains the cost for the EG1 works..

What the contractor does each month is to progress these activities and stretch the duration’s to match the Forecast finish date that he requires to show. Then to summarise by EG1, to replicate the summarised data on the Hammock, for his BCWP for that Zone.

The problem we have is that since P3 summarises the Level 3 activities by the formula [(Sum of the Original Duration - Sum of the Remaining Duration) / Sum of the Original duration ] x 100, gives a negative percentage. Since the majority of the duration’s are now greater than the OD, when summarising, the roll up shows zero %... So, whatever the contractor displays in his Hammock, as %, cannot be backed up. (unless he recalculates his OD, by calling it the sum of OD + RD)

From this, should the contractor be progressing the baseline, with % complete only, without the influence of the RD being greater than the OD?

What are your thoughts, and what have you seen other contractors use?
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Tue, 2002-07-23 09:52
#1
Mike Harvey
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Unless there has been a variation to the contract it is unwise to change the duration to suit the situation.

When the contractor tendered the works he was aware of how long the operation should take and on that basis was awarded the works.

Unless underground obstructions have been encountered progress should be calculated as a % or remaining duration as long as the RD is not in excess of the OD.

The actual duration of the operation then becomes the topic of debate.

Hope this helps

Mike Harvey
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Wed, 2002-07-31 06:44
#2
Ali Hamouda
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Dear Mike,

(First of all apologize my unproffesional way of explaining..I have studied planning by experience).

I have a question has an indirect relation to your answer which is:what are the precautions that should be taken while Updating the Schedule?

In my mind some unclear points we should be woried about, while updating the schedule:

1-do we have to update End-ST to be and should equal to the anticpated duration(as I understand from your answer that once the duration of the activity becomes more than what is planned so we should request an official change for this period.

2-what about T.F,,I mean even if the duration becomes more than the targeted duration and we still have a +T.F,so do we need to have a variation order to the contract if we found that the OD becomes less than the (Actual End-Act Start).

3-shall we care about out of sequence activities which mean that if we start activity B before the End of Activity A(and B was supposed to start after the End of A).i.e shall we request a change of relation from the consultant to suit the new sequence.

4-some of the activities I have met such as mechanical work has a duration say 30 days (for example fire fighting work) and it stay more than 3 months) and still has a +T.F, because it happens that the subcontractor can’t work continously in one floor may be because of a lack of material or any other obstractions(and I am not using the option of suspend and resume in primavera, do I have to use this option)

in final words what are the effects of Updating on the % progress of the project then on any other related subjects (such as BCWP)?

thanks
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Fri, 2002-06-21 08:59
#3
Gareth Jones
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Cheers Paul,

Just printed your paper on EV in P3, we as the Project Management team are aware of the methods involved; but it’s rather a tough case in coaching our contractor... I’m sure this paper will help.

Noticed that you are based in Melbourne, we have a Cost Engineer here (London, UK) from Melbourne, small world!.

Thank you,

Regards,

Gareth

Gareth G. Jones
Project Controls Engineer
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Fri, 2002-06-21 08:20
#4
Paul Harris
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Garath

You will find an article on my web site at www.eh.com.au on Earned Value Performance Measurement that may be of assistance.

Regards

Paul E Harris
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