Dear all,
I would like to get some guidelines from more experienced colleagues in the situation of using Earned Value in the following scenario:
Before the start of the project I have created project schedule and based on this schedule the project cost got calculated. Based on this cost the price has been created to the customer and a fixed price contract has been signed
Now I execute this project. During execution of the project we find, that some of the tasks got forgotten to be included in the cost calculation at a presale phase. The nature of these tasks is that they are not critical and can be done at the very end of the project, once most of the originally planned (not forgotten) activities are completed. Still they have to be all completed to close the project.
In this case CPI of my project (measured based on the performed so far tasks) cannot be used as a good indication to calculate the EAC using the formula EAC=BAC/CPI, just because the CPI only shows how good the cost prediction was for not forgotten activities and does not take into account forgotten ones. The situation would be different if forgotten activity would be equally spread across the project duration, then CPI at the beginning of the project would be a good indication to show the EAC, based on the CPI measured so far and BAC.
I can think of several solutions for this, but I just wondering whether there are some standard guidelines for this situation?