Project Time Management

and
Practical Application of
Earned Value Management (EVM) System
Chathura Udayanga
Forensic Delay Analyst / Claim Specialist
David Adamson & Partners Oversees (Qatar)
Co-Founder of The6 Consultancy & EPC Consultancy
BSc. Eng, MBA , MCIOB
Mobile: +974 3350 3947
WhatsApp: +94 767 411 314
Email: [email protected]
Content
 Time Management (in General)

Are we really
busy?

Or

We are not
setting priorities
correct?

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 Important vs Urgent

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 Sri Lankan Context Vs ME Context of
Project Time Management

• Gap between “who produce” vs “who demanded by industry”

• In SL Context, Companies think that PE is always fresh graduate
and fancy bar chart creator (art-work man)
• Underestimation of role of planners
• Lacking of overall knowledge base (Planning+CA+Claims)
 “Failing to plan is planning to fail”
by J. Hinze, Construction Planning and Scheduling

What is the Project

A project is a temporary endeavour undertaken
to create a unique product or service. (PMBOK® Guide
6th Ed)

Definite Beginning and End

Project Schedule Management

 Project Schedule Management (PMBOK® Guide 6th Ed)

Process of establishing policies, procedures, and documentation for

What
Plan Schedule Management planning, developing, managing, executing, and controlling the
project schedule

Define Activities What Project Deliverables WBS Work Packages Activities

Identifying specific actions to be performed to produce project deliverables

Sequence Activities What Process of identifying and documenting relationships among activities

Estimate Activity Durations What Process of estimating the number of work periods needed to
complete individual activities with estimate resources

Develop Schedule What Process of analyzing sequences, durations, resource requirements,

and schedule constraints to create project schedule model

Process of monitoring status of project to update project schedule

Control Schedule What
and manage changes to the schedule baseline
FIDIC Red book 1999 (First Edition) Contractual reference
Sub-Clause 8.3
The Contractor shall submit a detailed time programme to the Engineer within 28 days after receiving the
notice under Sub-Clause 8.1 [Commencement of Works]. The Contractor shall also submit a revised
• Shall: Mandatory / Obligatory
programme whenever the previous programme is inconsistent with actual progress or with the Contractor’s
obligations. Each programme shall include: • Detailed time programme: Detailed in which experienced
(a) the order in which the Contractor intends to carry out the Works, including the anticipated timing
Contractor/Planner can reasonably judge with available
of each stage of design (if any), Contractor’s Documents, procurement, manufacture of Plant, information
delivery to Site, construction, erection and testing,

(b) each of these stages for work by each nominated Subcontractor (as defined in Clause 5
• Revised programme: (in FIDIC, No terminology for
[Nominated Subcontractors]), recovery)
(c) the sequence and timing of inspections and tests specified in the Contract, and
• Design, Engineering, Procurement, Construction, T&C,
(d) a supporting report which includes: Handing over
(i) a general description of the methods which the Contractor intends to adopt, and of the
major stages, in the execution of the Works, and
• Major stages: Zones, Sections, levels, disciplines, etc

(ii) details showing the Contractor’s reasonable estimate of the number of each class of • Resource loaded: (manpower and machineries) no material
Contractor’s Personnel and of each type of Contractor’s Equipment, required on the Site for
each major stage.
mentioned

Unless the Engineer, within 21 days after receiving a programme, gives notice to the Contractor stating the • No where it has mentioned that the Engineer shall approve
extent to which it does not comply with the Contract, the Contractor shall proceed in accordance with the
programme, subject to his other obligations under the Contract. The Employer’s Personnel shall be entitled
the detailed time programme/schedule
to rely upon the programme when planning their activities.
• The Contractor shall proceed accordance with programme
The Contractor shall promptly give notice to the Engineer of specific probable future events or
circumstances which may adversely affect the work, increase the Contract Price or delay the execution of
(if within 21 days, No reply from the Engineer)
the Works. The Engineer may require the Contractor to submit an estimate of the anticipated effect of the
future event or circumstances, and/or a proposal under Sub-Clause 13.3 [Variation Procedure]. • In-consistent planned vs actuals; Contractor shall submit
If, at any time, the Engineer gives notice to the Contractor that a programme fails (to the extent stated) to
revised programme upon Engineer gives notice
comply with the Contract or to be consistent with actual progress and the Contractor’s stated intentions, the
Contractor shall submit a revised programme to the Engineer in accordance with this Sub-Clause.
 FIDIC Red book 2017 (Second Edition)
Sub-Clause 8.3
The Contractor shall submit an initial programme for the execution of the Works to the Engineer within 28 days after receiving the Notice under Sub-
Clause 8.1 [Commencement of Works]. This programme shall be prepared using programming software stated in the Specification (if not stated, the
programming software acceptable to the Engineer). The Contractor shall also submit a revised programme which accurately reflects the actual
progress of the Works, whenever any programme ceases to reflect actual progress or is otherwise inconsistent with the Contractor’s obligations.

The initial programme and each revised programme shall be submitted to the Engineer in one paper copy, one electronic copy and additional paper
copies (if any) as stated in the Contract Data, and shall include:

(a) the Commencement Date and the Time for Completion, of the Works and of each Section (if any);

(b) the date right of access to and possession of (each part of) the Site is to be given to the Contractor in accordance with the time (or times)
stated in the Contract Data. If not so stated, the dates the Contractor requires the Employer to give right of access to and possession of (each part of)
the Site;

(c) the order in which the Contractor intends to carry out the Works, including the anticipated timing of each stage of design (if any), preparation and
submission of Contractor’s Documents, procurement, manufacture, inspection, delivery to Site, construction, erection, installation, work to be
undertaken by any nominated Subcontractor (as defined in Sub-Clause 5.2 [Nominated Subcontractors]) and testing;

(d) the Review periods for any submissions stated in the Specification or required under these Conditions;

(e) the sequence and timing of inspections and tests specified in, or required by, the Contract;

(f) for a revised programme: the sequence and timing of the remedial work (if any) to which the Engineer has given a Notice of No-objection under
Sub-Clause 7.5 [Defects and Rejection] and/or the remedial work (if any) instructed under Sub-Clause 7.6 [Remedial Work];

(g) all activities (to the level of detail stated in the Specification), logically linked and showing the earliest and latest start and finish dates for each
activity, the float (if any), and the critical path(s);

(h) the dates of all locally recognised days of rest and holiday periods (if any);
 FIDIC Red book 2017 (Second Edition)
Sub-Clause 8.3 Cont’
(i) all key delivery dates of Plant and Materials;

(j) for a revised programme and for each activity: the actual progress to date, any delay to such progress and the effects of such delay on other activities (if any); and

(k) a supporting report which includes:

(i) a description of all the major stages of the execution of the Works;
(ii) a general description of the methods which the Contractor intends to adopt in the execution of the Works;
(iii) details showing the Contractor’s reasonable estimate of the number of each class of Contractor’s Personnel, and of each type of Contractor’s Equipment,
required on the Site, for each major stage of the execution of the Works;
(iv) if a revised programme, identification of any significant change(s)to the previous programme submitted by the Contractor; and
(v) the Contractor’s proposals to overcome the effects of any delay(s) on progress of the Works

The Engineer shall Review the initial programme and each revised programme submitted by the Contractor and may give a Notice to the Contractor stating the extent
to which it does not comply with the Contract or ceases to reflect actual progress or is otherwise inconsistent with the Contractor’s obligations.
If the Engineer gives no such Notice:

- within 21 days after receiving the initial programme; or

- within 14 days after receiving a revised programme

the Engineer shall be deemed to have given a Notice of No-objection and the initial programme or revised programme (as the case may be) shall be the
Programme.

The Contractor shall proceed in accordance with the Programme, subject to the Contractor’s other obligations under the Contract. The Employer’s Personnel shall be
entitled to rely on the Programme when planning their activities.

Nothing in any programme, the Programme or any supporting report shall be taken as, or relieve the Contractor of any obligation to give, a Notice under the Contract.

If, at any time, the Engineer gives a Notice to the Contractor that the Programme fails (to the extent stated) to comply with the Contract or ceases to reflect actual
progress or is otherwise inconsistent with the Contractor’s obligations, the Contractor shall within 14 days after receiving this Notice submit a revised programme to
the Engineer in accordance with this Sub-Clause.
 General Content of detailed time programme/
an initial programme
• Sub-Clause 8.3 programme submission;

• Narrative
• Key dates (Contractual milestones, Construction milestones, sectional
completions)
• Productivity norms
• WBS with unique coding system
• Assumptions used
• Gang/team movement chart
• Major quantity histogram, manpower histogram, and machinery
histogram
• Weightages loaded S-curve
• Calendars and public holidays considered
• Software ( Ex. Primavera P6.0 Ver 15.2 above)
 Assigning weightages and generation of S-Curves
Scope of Work Weightage Types
Weightage = Cost; Called Cost Curves
WBS - Work Package - Activities

Contract BOQ Amount = 16,000 Mns

MAPPING BOQ to ACTIVITIES

ACTIVITY ID A1021
BOQ ID 12.5
ACTIVITY ID A5023

BOQ ID 21.6
ACTIVITY ID B3421
BOQ ID 11.2
 Assigning weightages and generation of S-Curves (Con’t)
Weightage Types
Weightage = (Labour + Machinery); Called Combined Weightage Curves
Weightage Conversion
S. No Activity Machinery (E) Manpower (M)
Factor E/M
WBS Level 1 Design by D&B Assign Budgeted Labor Unit and
Employer Contract 1 Demolition & Removal 80 10 8.00
Preliminary 2% 2% Budgeted Machinery Unit 2 Excavation 90 5 18.00
Design N/A 4% 3 Sub base preparation 60 10 6.00
Engineering & NOC's 6% 6%
Procurement & Delivery 4% 4% Convert
Construction 85% 81% Budgeted TOTAL
Budgeted Machinery unit
Final Testing & Commissioning 2% 2% S. No Activity Machinery Construction
Labor units (B) to Labor Units
Handover 1% 1% units (A) units (B+C)
(C = A* E/M)
TOTAL 100% 100%
1 Demolition & Removal 500 1,000 4,000 5,000
2 Excavation 1,000 500 18,000 18,500
S- Curve 3 Sub base preparation 2,000 2,000 12,000 14,000
50,000 TOTAL Construction Units 37,500
45,000 44,188
PV (BCWS) 42,807
40,000 40,874
38,388 85% Construction units = 37,500
35,000 34,522 New Labor
30,000 29,413 WBS Level 1 Weightage Resource New Labor
25,000 24,856 Units WBS Level 1 Weightage Resource
20,000 19,885 Preliminary 2% 882 Units
15,000 14,361 Design N/A - Preliminary 2%
10,000 9,390 Engineering & NOC's 6% 2,647 Design N/A
2,486 5,800 Engineering & NOC's 6%
5,000 Procurement & Delivery 4% 1,765
Procurement & Delivery 4%
0 0 Construction 85% 37,500
0 1 2 3 4 5 6 7 8 9 10 11 12 Construction 85% 37,500
Final Testing & Commissioning 2% 882
Final Testing & Commissioning 2%
Months 0 1 2 3 4 5 6 7 8 9 10 11 12 Handover 1% 441
PV (BCWS) 0 2,486 5,800 9,390 14,361 19,885 24,856 29,413 34,522 38,388 40,874 42,807 44,188 Handover 1%
TOTAL 100% 44,118
TOTAL 100%
 Assigning weightages and generation of S-Curves (Con’t)
Weightage Types
Weightage = (Cost + Labor + Duration); Called Combined Weightage Curves
Budgeted
Budgeted Cost Duration S- Curve
S. No Activity Labor units
(QR) (Days) 1,000,000 1,000,000
(Mandays) 925,000
968,750
900,000
868,750
1 Demolition & Removal 1,000 3,350,000 90 800,000
PV (BCWS)
781,250
2 Excavation 500 2,100,000 120 700,000
665,625
3 Sub base preparation 2,000 2,550,000 60 600,000
562,500
TOTAL Units 3,500 8,000,000 270 500,000
450,000
30% 60% 10% 400,000
300,000 325,000

Decide total weightage = 1,000,000 Units 200,000 212,500

56,250 131,250
100,000
0 0
0 1 2 3 4 5 6 7 8 9 10 11 12

Months 0 1 2 3 4 5 6 7 8 9 10 11 12
PV (BCWS) 0 56,250 131,250 212,500 325,000 450,000 562,500 665,625 781,250 868,750 925,000 968,750 1,000,000

Equvalent Units
S. No Activity Overal
Labour Cost Duration S. No Activity
1 Demolition & Removal 85,714 251,250 33,333
Weitage Factor
2 Excavation 42,857 157,500 44,444 1 Demolition & Removal 370,298
3 Sub base preparation 171,429 191,250 22,222 2 Excavation 244,802
300,000 600,000 100,000 3 Sub base preparation 384,901
TOTAL Units
1,000,000 TOTAL Units 1,000,000
 S-Curves Types: Front-loaded vs back-loaded

Back-loaded
Risk to Employer

Front-loaded
Risk to Contractor

Balanced S-Curve
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 S-Curves Types: Banana Curves (Early vs Late)
S- Curve
17,000
16,000
15,500
15,000 14,800
14,700
Early Curve Late Curve 13,900
13,000 12,500
13,200

11,000 10,650
11,000

9,000 9,000
8,000
7,000 7,200

5,500
5,000 5,200

3,400 3,500
3,000
2,100
600 2,450
1,000 1,100 1,800
0 600

-1,000 0 1 2 3 4 5 6 7 8 9 10 11 12

Months 0 1 2 3 4 5 6 7 8 9 10 11 12
Early Curve 0 600 2,100 3,400 5,200 7,200 9,000 10,650 12,500 13,900 14,800 15,500 16,000
Late Curve 0 600 1,100 1,800 2,450 3,500 5,500 8,000 11,000 13,200 14,700 15,500 16,000
 Earned Value Analysis
• “Earned Value Analysis” is; an industry standard way to:

• Measure a project’s progress,

• Forecast its completion date and final cost, and
• Provide schedule and budget variances along the way.

• By integrating three measurements, it provides consistent, numerical indicators with

which you can evaluate and compare projects.

• Three measurements;
• PV = Planned Value = Budgeted Cost of Work Scheduled
• AC = Actual Cost = Actual Cost of Work Performed
• EV = Earned Value = Budgeted cost of Work Performed
 Earned Value Definitions
• PV - “Planned Value”
Planned cost of the total amount of work scheduled to be performed by data date .

• PV = BCWS = Budgeted Cost of Work Scheduled

 Earned Value Definitions (cont.)
• AC: “Actual Cost of Work Performed”
Cost incurred to accomplish the work that has been done to date.

• AC = ACWP = Actual Cost of Work Performed

 Earned Value Definitions (cont.)
• EV: Earned value or Budgeted Cost of Work Performed
The planned (not actual) cost to complete the work that has been done.
• EV = BCWP = Earned Value or Budgeted Cost of Work Performed
The Whole Story
 The Whole Story (Cont’)
• SV: Schedule Variance (EV-PV)
• A comparison of amount of work performed during a given
period of time to what was scheduled to be performed
• A negative variance means the project is behind schedule
• Example: Minus : Behind the Schedule

• CV: Cost Variance (EV-AC)

• A comparison of the budgeted cost of work performed
with actual cost
• A negative variance means the project is over budget.
• Example: Plus : Under budget

• SPI: Schedule Performance Index (EV/PV); Example: SPI<1 : Behind the Schedule
• If SPI<1 means project is behind schedule

• CPI: Cost Performance Index (EV/AC); Example: CPI>1 : Under budget

•If CPI<1 means project is over budget

• EAC: Estimated at Completion(BAC/CPI);

• What do we currently expect the TOTAL project cost (a forecast)?
Forecast

Budget
Saving

Delayed
 If So, Why we don’t see two curves? EV and AC
• This AC and EV applies for Contractor’s internal curves
• We generally refer in MPR; S-curve for Client perspective
• EV and AC are same for Client point of view
• Therefore, It applies only for SPI and SV
• Example:
• Contract value is 10.0 Mns and Contractor’s Project budget is 8.0 Mns

S-
S- Curve
10,000,000
S-Curve of Employer
Curve
perspective 10,000,000
S- Curve
S- Curve
10,000,000 9,687,50010,000,000 10,000,000
10,000,000
9,000,000 9,250,000 9,687,500
9,000,000 8,687,500 9,250,000 9,000,000
9,000,000
PV (BCWS) AC (ACWP) EV (BCWP) 8,687,500
8,000,000 PV (BCWS) AC (ACWP) EV (BCWP)
PV (BCWS) 7,812,500 8,000,000 PV (BCWS)
8,000,000 8,000,000 7,750,000 8,000,000
8,000,000
7,000,000 7,812,500 7,400,000 7,750,000
6,656,250 7,000,000 6,950,000 7,400,000
7,000,000
6,000,000 7,000,000 6,250,000 6,950,000
5,625,000 6,656,250 6,000,000
6,000,000
5,000,000 6,000,000 5,325,000 6,250,000
5,000,000
4,500,000 5,625,000 4,500,000 5,325,000
4,000,000
5,000,000 5,000,000
4,000,000
3,250,000 4,500,000 3,600,000 4,500,000
3,000,000
4,000,000 3,000,000
4,000,000 2,600,000 3,600,000
2,125,000
2,125,000 3,250,000
2,000,000 2,125,000 2,000,000
3,000,000 1,375,000
3,000,000 1,700,000 1,700,000
562,500 1,312,500 450,000 2,600,000
1,000,000 937,500
937,500 1,375,000 1,000,000 1,050,000 1,100,000
1,225,000
2,000,000 437,500 2,125,000 2,000,000 350,000
750,000
550,000 900,000
0 0 437,500
0 0 300,000 1,700,000
562,500 1,312,500 450,000
1,000,000 0 1 2 3 4 5 6 7 8 9 10 11 12 1,000,000 0 1 1,050,000
2 3 4 5 6 7 8 9 10 11 12

Months 00 10 2 3 4 5 6 7 8 9 10 11 12 Months 00 01 2 3 4 5 6 7 8 9 10 11 12
PV (BCWS) 0 562,5000 1,312,500
1 2
2,125,000 3
3,250,000 4
4,500,000 5
5,625,000 6
6,656,250 77,812,500 8 8,687,5009 9,250,000
10 11
9,687,500 12
10,000,000 PV (BCWS) 0 0
450,000 1
1,050,000 2
1,700,000 3
2,600,000 4
3,600,000 5
4,500,000 6
5,325,000 76,250,000 86,950,000 9 7,400,00010 7,750,00011 8,000,000
12
AC (ACWP) 0 437,500 937,500 1,375,000 2,125,000 AC (ACWP) 0 300,000 550,000 900,000 1,225,000
Months
EV (BCWP) 00 437,500 1 937,500 2 1,375,000 3 2,125,000 4 5 6 7 8 9 10 11 12 EV (BCWP)
Months 00 350,0001 750,0002 1,100,0003 1,700,0004 5 6 7 8 9 10 11 12
Forecast
PV (BCWS) 00 562,500 1,312,500 2,125,000 3,250,000 4,500,000 5,625,000 6,656,250 7,812,500 8,687,500 9,250,000 9,687,500 10,000,000 Forecast 0 11,527
PV (BCWS) 0 450,000 1,050,000 1,700,000 2,600,000 3,600,000 4,500,000 5,325,000 6,250,000 6,950,000 7,400,000 7,750,000 8,000,000
 Revised vs Recovery Schedules
S- Curve • Revised :
17,000 • EOT Granted
16,000
15,000 PV (BCWS) EV (BCWP) Revised Recovery 15,500
16,000 16,000
• TFC extended
14,800 14,500
13,900 14,000
13,000 13,200
12,500 12,500
11,500
11,000 10,650 10,500
EOT
9,000
9,600 • Recovery:
9,000 8,900
7,800 • No EOT
7,000 7,200 7,200
6,800
• Recovery of Delays
5,600
5,000 5,200 5,200
4,300
• Schedule Compression
4,100
3,000 3,400 2,450
3,250
2,450
900 2,100 2,450
1,000 1,100 1,800
0 600
-1,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 • Catch-up Schedule:
• No EOT
Months 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 • Recovery of Delays with
PV (BCWS) 0 900 2,100 3,400 5,200 7,200 9,000 10,650 12,500 13,900 14,800 15,500 16,000 in short period
EV (BCWP) 0 600 1,100 1,800 2,450
Revised 0 2,450 3,250 4,300 5,600 6,800 7,800 8,900 10,500 12,500 14,000 16,000
• Schedule Compression
Recovery 0 2,450 4,100 5,200 7,200 9,600 11,500 13,200 14,500 16,000
Schedule Compression Techniques

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 Delay tracking register and pathway to EOT claim
Delay Event Register as at 03 Nov 2019
Delay
Delay Entitle Delay Delay Delay Notice Delay Notice
Sr. Status of Status of Impacted Mitigation
Caused Delay Delay Finish Delay Contract Impacted Quantum Delay notice reference Replied Letter
No Delay Event Delay Delay Activity Measures
Chronol Start Date Date Owner Referenc Activity Agreed by issued number by Reference by
. Event Impact Description/ Taken
ogy e Code/s parties Contractor Engineer
s

Swimming
Delay due to unforeseeable
1 DE.01 1-Oct-19 Continue Open Open Engineer GCoC 3.1 A-3225 pool None Yes Yes XX-PM-0005 YY-CON-0003
physical conditions
construction

Delay in issuing Landscape deign FOH B2-

2 DE.02 2-Oct-19 10-Oct-19 closed closed Contractor GCoC 4.8 A-3252 1 TBA No XX-PM-0253 YY-CON-00152
Corrido

** Note: This is live document which shall be updated weekly basis and circulated.

• PE’s responsibility to maintain delay tracking register as a live document

• Raise the flag when delays are required to notify Contractually
• Maintaining relevant contemporary records and detail particulars
• Identification of set of merited/stronger delay events
• Maintaining Delay chronologies
Final thoughts tonight
• Does Engineer obligate to approve/accept the BL schedule?
• Can Engineer apply LDs, if Contractor records; SV<0, SPI<1?
• If Contractor missed to commence work on planned start date in BL schedule,
is it called delay?
• What does mean by the project delays?
• Does project delays something like a crime?
• Who owns the float?
• Contractual programmes and Working programmes
 Thank You

Open For Q&A

Further Readings
www.planningplanet.com (Planners & Schedulers User Group)
www.ciob.org.uk (Chartered Institute of Building)
www.apm.org.uk (Association of Project Management)
www.pmi.org.uk (Project Management Institute)
www.scl.org.uk (Society of Construction Law)