Earned Value Management In Projects

Construction's $1B risk allocation problem. That NOBODY wants to address: When clients provide site data with "use at your own risk" disclaimers, they're not eliminating risk - just creating a ticking time bomb. The Australian Constructors Association and Consult Australia have joined forces to tackle this issue through their "Partnership for Change" initiative: What reliance information includes: - Geotechnical reports - Concept/reference designs - Utilities data - As-built drawings - Contamination reports - Condition of existing assets The impossible position for tenderers: → Cannot verify during tight tender periods → Have no contractual relationship with the original advisors → Must accept "all risk" clauses or be disqualified → Receive zero relief when information proves inaccurate The partnership recommends 2 approaches: PREFERRED APPROACH: - Client secures third-party reliance from original advisors - Original consultants allow reliance for project delivery - No expectation of 100% accuracy, but a mechanism for collaboration when issues arise - Clear risk allocation based on ability to control FALLBACK POSITION: - Re-investigation of reliance information - Early Contractor Involvement (ECI) to assess data collaboratively - Provisional sums with extension of time provisions - Baseline reports that quantify specific risk thresholds Proof these approaches work: Level Crossing Removal Project's alliance model delivered dramatic improvements: - Competitive bid: 5% estimate omissions vs Alliance: 0.9% - Competitive bid: 6.6% cost overrun vs Alliance: 2.2% underrun - 88 weeks tender time reduced to 38 weeks Snowy 2.0 Pumped Storage Project implemented a geotechnical baseline report (GBR) that: - Set out clear risk allocation between client and tenderer - Created a principled sharing of complex geological risks - Prevented tenderers from assuming unknowable risks - Established reasonable expectations for all parties As the partnership paper states: "It is incorrect to assume that because a risk is deemed to have been transferred that it no longer exists." Risk transfer isn't risk management. It's risk multiplication. Has your organisation implemented any of these collaborative risk approaches? What were the results? 

Every PM has that horror story. The schedule looked fine... Until week six, when every task turned red like a Diwali sale banner. Executives panic. The team blames the client. The client blames “scope fluidity.” And you? You open the Gantt chart, whisper a prayer, and hit Save As: Final_v9_REAL_FINAL.mpp. Here’s the thing: Projects don’t fail because of bad people. They fail because no one saved the baseline before chaos hit. A baseline isn’t bureaucracy. It’s your black box recorder. When things crash, it shows how and when- not who. Want to survive your next digital transformation? Start here: 1️⃣ Build a Work Breakdown Structure in MS Project- break deliverables before they break you. 2️⃣ Link dependencies. Set the baseline. Make variance reports a story, not a post-mortem. 3️⃣ Sync with SharePoint or Teams- one ecosystem for docs, chats, and task logs. 4️⃣ Track CPI and SPI in Project Online- so your budget doesn’t find religion mid-quarter. The numbers back it up: 40M PMs today. We’ll need 30M more by 2035 (monday.com). PM software market? $7.2B in 2025 → $12B by 2030. That’s not hype; it’s survival math. Takeaway: Governance doesn’t slow you down. It slows time for you. Because when your schedule speaks in numbers... ...execs stop micromanagingand start trusting. Final question: If your last project had a baseline... Would it still have ghosted the timeline?

After decades of working in project risk analysis—and building our own Monte Carlo-based software tool (HawkEye)—I’ve been refining a practical way to bridge the gap between schedule risk and cost risk. That method eventually became RISA: Risk Impact Sensitivity Analysis. In my last article, I focused on schedule risks. But in this new one, I take the next step: 👉 Integrating schedule AND cost risks into one rational, quantitative model. Why does that matter? Because schedule risks don’t just delay projects—they ripple into labor costs, procurement, contracting strategies, and the overall project budget. Yet many teams still treat schedule and cost analysis separately. In this article, I walk through: ⚙️ How to integrate schedule and cost simulations 🎯 How RISA helps prioritize the risks 🛠️ How mitigation strategies change outcomes 📊 How to calculate contingency reserves based on data, not optimism And yes—there’s a real case study to make it practical. Hope you enjoy the read—and I’d love to hear your thoughts or experiences. 📄 Article link below 👇 https://lnkd.in/gi-S7HVg #ProjectManagement #RiskManagement #MonteCarloSimulation #RISA #ProjectControls #CostEngineering #ConstructionProjects #DataDrivenDecisions #PMO #ScheduleRisk #CostRisk #RiskAnalysis #EngineeringManagement #ProjectControlAcademy

Your project started without a baseline? Welcome to 90% of real-world Monitoring and Evaluation. Most programmes launch with urgency, political pressure, or donor timelines, not perfect data systems. That doesn’t mean you can’t measure change. It just means you need to reconstruct the “before” using the tools seasoned evaluators rely on: 🔹 Start with what already exists Intake forms, early reports, planning documents, grant proposals, even if they weren’t created for MEL, they often contain reference points you can extract. 🔹 Use recall methods strategically Ask participants and staff to describe conditions before the intervention, but anchor their memory to major events: ↳ “Before the school opened…” ↳“Before the water point was installed…” This reduces bias and increases accuracy. 🔹 Pull secondary data to fill the gaps Census tables, ministry surveys, NGO assessments, anything close in geography and timeframe can provide a credible reference. 🔹 Triangulate relentlessly Never rely on one source. Cross-check community recall with government data, staff insights, and documentation. Retrospective baselines aren’t shortcuts. They’re structured, defensible methods for rebuilding the past and they’re what experienced evaluators use when perfection isn’t possible (which is most of the time). 🔥 If you want more practical MEL techniques like this with no jargon, no theory-only talk, join my mailing list for weekly insights that will sharpen your practice. #Baseline

✨ The Ultimate Baseline Schedule Checklist A Checklist to keep your projects on track — with style! 😄📅 Creating a solid baseline schedule is the backbone of successful project delivery. Whether you’re managing construction, IT, engineering, or any time-sensitive project, a clear schedule helps align teams, reduce risks, and set expectations. Here’s a crisp and professional checklist you can use (and share!) to ensure your baseline schedule is truly bulletproof. 🚀 ✅ 1. Define Clear Project Scope & Objectives Before anything else, ensure the scope is crystal clear. 🔹 Have all deliverables been identified? 🔹 Are milestones fully defined? 🔹 Is the Work Breakdown Structure (WBS) approved? 🛠️ 2. Break Down Activities Effectively A schedule is only as strong as its activity list! 🔹 Each task should be measurable. 🔹 Activities must be sequenced logically. 🔹 Duration estimates should be realistic — not optimistic. 😉 🔗 3. Establish Logical Relationships Dependencies matter. 🔹 Is relationships set correctly? 🔹 No unnecessary constraints? 🔹 Lags/leads used appropriately? ⏱️ 4. Validate Durations & Resources Ensure the plan can actually be executed. 🔹 Has resource availability been checked? 🔹 Are durations backed by real data? 🔹 Is workload balanced across teams? 📍 5. Confirm the Critical Path Your critical path is your project heartbeat ❤️ 🔹 Is the CP clearly highlighted? 🔹 Any negative float or unrealistic compression? 🔹 Are high-risk tasks identified? 📊 6. Review Calendars & Constraints Project calendars make or break timelines. 🔹 Are working hours and holidays correct? 🔹 No hidden hard constraints? 🔹 Have exceptions been validated? 📁 7. Approval & Baseline Freeze Once everything is aligned — freeze it! ❄️ 🔹 Reviewed by PM, client, and stakeholders? 🔹 Version properly labeled? 🔹 Baseline stored in the project repository? 🌟 8. Communicate the Schedule A schedule is useless if not communicated. 🔹 Stakeholders informed? 🔹 Team briefed on key tasks and milestones? 🔹 Reporting structure established? 🎉 A great baseline schedule is the foundation of a great project. Build it strong, review it often, and let it guide your success! #ProjectManagement #Scheduling #BaselineSchedule #ConstructionManagement #PMO #PlanningAndScheduling #Leadership

Glen Palmer, PSP, CFCC, FAACE and I are honored by AACE publishing another of our Top Ten series of papers in the Cost Engineering Journal. Resource management sits at the heart of project success—and, too often, at the root of costly construction claims. Why Focus on Resources? Most construction schedules are built on assumptions about production rates, durations, and quantities. But when resource planning falls short—whether due to unrealistic manpower peaks, lack of skilled labor, or poor coordination—projects risk delays, cost overruns, and disputes. Rather than waiting for claims to arise, Palmer and Carson argue for a proactive approach: plan, validate, and monitor your resources from day one. Key Takeaways from the Top Ten Approaches: 1. Validate Resources by Discipline: Go beyond surface-level schedule checks. Detailed resource validation—using field-experienced personnel—can identify unrealistic resource peaks and prevent unachievable schedules. 2. Formalize Punch and Warranty List Management: Avoid never-ending completion and warranty periods by developing comprehensive, early punch lists and using structured warranty management systems. 3. Check Resource Earning Curves: Ensure planned progress is actually achievable by comparing planned manpower curves and production rates to real-world constraints. 4. Manage Schedule Compression: When compressing schedules, understand the risks and costs of acceleration and recovery. Use structured analysis and documentation to avoid disputes. 5. Review General Conditions Labor: Monitor and budget field overhead costs carefully, and avoid relying on variable, hard-to-track level-of-effort activities. 6. Use Constructability Reviews: Always have experienced field experts review “fast-tracked” project schedules to spot resource and constructability problems early. 7. Address Trade Stacking and Overcrowding: Analyze crew concurrency and area usage to prevent inefficiencies from too many workers or trades in the same space. 8. Specify Resource Requirements in Schedules: Include resource histograms and percent curves in scheduling specifications to enable thorough schedule reviews. 9. Plan for Resource Availability: Evaluate the availability of skilled labor and specialty resources, especially on large or geographically constrained projects. 10. Minimize Inefficiencies from Disrupted Trade Work: Align procurement, sequencing, and trade starts to reduce disruption, and use targeted planning to ensure work is completed efficiently on the first attempt. Conclusion: Resource-related claims are often avoidable with disciplined planning, honest schedule validation, and ongoing monitoring. By following these ten approaches, project teams can dramatically reduce the risk of disputes, keep projects on track, and protect both profit and reputation.

No Baseline = No Control 🛑 If you don’t set a baseline, you’re not managing a project you’re just watching it. I learned this the hard way. In my early days as a planning engineer, I was updating progress weekly in Primavera P6 but I hadn’t set a proper baseline. It was only during the monthly review when someone asked, ➡️ “What’s the variance from plan?” And I had nothing to show. 🎯 That moment changed everything. Now, baseline setting is non-negotiable: ✅ It’s my control reference ✅ It’s the foundation of S-curves, earned value, and delay analysis ✅ It protects the integrity of reports And yes, when changes come (because they will), I follow proper procedures to update or re-baseline — with approvals and justifications. 📌 A moving target is impossible to manage. Set your target first. #baseline #primaverap6 #earnedvalue #projectcontroltools #constructionplanning #projectmanagement #planningengineer

𝗠̲𝗼̲𝘀̲𝘁̲ ̲𝗰̲𝗼̲𝗻̲𝘀̲𝘁̲𝗿̲𝘂̲𝗰̲𝘁̲𝗶̲𝗼̲𝗻̲ ̲𝘀̲𝗰̲𝗵̲𝗲̲𝗱̲𝘂̲𝗹̲𝗲̲𝘀̲ ̲𝗳̲𝗮̲𝗶̲𝗹̲ ̲𝗯̲𝗲̲𝗳̲𝗼̲𝗿̲𝗲̲ ̲𝘁̲𝗵̲𝗲̲ ̲𝗳̲𝗶̲𝗿̲𝘀̲𝘁̲ ̲𝗽̲𝗼̲𝘂̲𝗿̲.̲ Not because of Primavera—because we accept “report schedules” as if they’re control schedules. I’ve packaged the Schedule Control Gate I use to approve baselines and run monthly control. It’s a practical, field-first workflow with 5 gates: 1-Scope & Structure – 100% scope, mapped to WBS & milestones 2-Logic & Network – auditable CPM (no fake float, no magic constraints) 3-Resource/Access Feasibility – buildable with real crews, cranes, and windows 4-Critical Path & Exposure – negative float has a named recovery owner 5-Baseline Lock & Change Control – single source of truth, no shadow schedules Grab the document (attached here as a LinkedIn doc). 👉 Question for you: Which gate breaks most on your projects—1, 2, 3, 4, or 5? (Comments welcome. I’ll share examples for the top answer.) — #projectcontrols #primaverap6 #planning #construction #EPC #schedulemanagement #pmo #delayanalysis #baseline #criticalpath #resourceleveling #CanadaConstruction

Construction projects are often seen as "money pits." But here is what most stakeholders miss: It is not just about having a big budget. It is about how you protect that budget. It is about the gap between Estimated and Actual. In the world of construction, cost management is the difference between a landmark success and a financial disaster. Profitability is fragile—it is easily swallowed by delays and poor tracking. ➡️ From my professional experience as a Financial Leader and my extensive background in Cost Management and Strategic Accounting, I have found that project success isn't built on the first estimate, but on the continuous control of every dollar throughout the project life cycle. Here are the 8 Critical Drivers to mastering construction cost management: 1️⃣ Accurate Estimation: Use historical data to move from conceptual to detailed estimates. A flawed baseline is a recipe for failure. 2️⃣ Robust WBS: You cannot manage what you haven't defined. A clear Work Breakdown Structure ensures total accountability for every task. 3️⃣ Labor & Material Control: These are your biggest variables. Track productivity and manage price fluctuations through strategic sourcing. 4️⃣ Earned Value Management (EVM): Integrate schedule and cost performance to see if you are truly on track, not just how much you spent. 5️⃣ Change Order Management: Scope creep kills margins. Every change must be analyzed for cost-benefit before approval. 6️⃣ Risk Mitigation: Allocating contingencies based on risk analysis—rather than guessing—is what protects your solvency. 7️⃣ Vendor Excellence: Select partners based on efficiency and manage contracts to minimize administrative overheads. 8️⃣ Value Engineering: It is not about cutting corners; it’s about optimizing function at the lowest cost to create a competitive advantage. The Bottom Line? Cost management is a strategic architect’s tool. When you master the flow of cash, you build a business that is resilient and highly profitable. Question for the experts: In your experience, what is the #1 cause of cost overruns—poor initial estimation or unmanaged change orders? ♻️ Like, Comment, Repost if you are committed to a culture of cost awareness. Mohammed fouad Wahba #CostManagement #ConstructionFinance #ProjectControls #FinancialLeadership #CFO #ValueEngineering #ProjectSuccess #StrategicFinance #إدارة_التكاليف #النجاح_المالي #استراتيجية_الأعمال #تحليل_التكاليف #التمويل #التحسين_المستمر #الأداء_المالي #المدير_المال

🚦 Schedule Performance Index (SPI) in Primavera P6 Your Project’s Pulse on Time Efficiency 🧠 What is SPI? SPI (Schedule Performance Index) is a key metric in Earned Value Management (EVM) that reveals how efficiently your project is progressing against the planned schedule—and it’s all built into Primavera P6. ✅ Formula: > SPI = Earned Value (EV) ÷ Planned Value (PV) EV (Earned Value): Work completed in terms of budgeted cost PV (Planned Value): Work that should have been completed by now 🧭 How to Read SPI? 🔢 SPI Value 📊 Status 🎯 What to Do > 1.0 ⏩ Ahead of schedule Keep up the momentum ✅ = 1.0 ⏱️ On schedule Stay steady 🔄 < 1.0 🐢 Behind schedule Investigate and take action ⚠️ < 0.80 🚨 Severely delayed Trigger a Recovery Plan immediately! 🛠️ 📉 Live Example in Primavera P6 🔍 In your EVMS layout, you may observe: MEP100: SPI = 0.00 → Planned = 100%, EV = 0% → 🚫 No progress recorded OR work not done MEP105: SPI = 0.25 → Only 25% of what was planned is done → 🔴 Indicates serious lag 📊 The Activity Usage Profile shows SPI trends over time—highlighting weak zones before they cause real delays. 🧯 When to Launch a Recovery Plan? If SPI drops and remains below 0.85, it’s a warning bell. Act fast to avoid cascading delays. 🚨 Recovery Plan Triggers: SPI < 0.85 across key WBS elements Critical path is slipping with zero float Major milestones are at risk SPI trend shows week-on-week decline 🛠️ How to Recover Schedule Performance? 🎯 Effective recovery steps may include: 🔁 Re-sequencing activities (non-critical path) 👥 Reallocation of resources / Overtime 🛠️ Schedule compression (Fast-tracking / Crashing) 🚧 Eliminating scope constraints 🔀 Executing tasks in parallel (where possible) 🔍 SPI ≠ Reality — Interpret Wisely SPI is data-driven, but it doesn't tell the whole story: ❗ A low SPI might reflect outdated progress updates, not actual delay 🎢 A high SPI early in the project doesn’t ensure final success ✅ Always combine SPI with Gantt, S-Curve & Critical Path analysis for true insight 🎯 Bottom Line > 📈 SPI is your project’s time-efficiency heartbeat. Ignore it—and you might miss the signs of schedule failure. Track it, understand it, and act early. That’s how real project control works. 🎁 Need a Dashboard? Want a custom SPI dashboard, recovery schedule, or a Primavera-based progress report template? 👉 Drop a message. Let’s make your reporting smarter and sharper! 🔖 #PrimaveraP6 #SchedulePerformanceIndex #SPI #ProjectControls #EVM #DelayAnalysis #PlanningEngineer #ConstructionProjects #ProgressTracking #ProjectRecovery #EarnedValueManagement #GanttChart #Infrastructure #EngineeringPlanning