This paper discusses how elements of earned value management techniques are being applied to construction projects, in conjunction with critical path method (CPM) schedule review, to measure project performance and forecast completion time and costs. This paper examines the approaches of traditional cost management compared to those of earned value management, and discusses the advantages of implementing earned value management over traditional cost management methods. We summarize how CPM schedules are reviewed and expound on how earned value metrics enhance the analysis of project performance for the benefit of the project team. This paper also highlights the added value that integrated schedule and cost reviews and analyses bring to the project in managing and mitigating risks. The objective is to demonstrate the benefits of implementing earned value analysis concurrently with CPM schedule review on construction projects, from the position of owner, contractor, and consultant. The challenges faced and the opportunities for improvement by those implementing these techniques are also addressed.
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