CH. 9

Question 1

This is the technique used by some contractors to determine the estimate value of work completed to date compared with actual cost of work complete.

Answer 1

Earned value (EV) or Earned Value Management (EVM.)

Question 2

What is the most effective use of earned value to a GC’s jobsite financial team?

Answer 2

The most effective use of earned value to a general contractor’s jobsite financial team is to track direct labor.

Question 3

If calculating material quantity through the EV method, what is the % complete of the total window estimate if a sub installed 150 windows out of 200?

Answer 3

150/200 or 75% of the total window estimate has been earned, regardless of how much was spent on those 150 windows.

Question 4

What can the EV curve tell us in regards to budget and schedule?

Answer 4

• Are we right on budget, over budget, or under budget, and by how many hours?
• Are he right on schedule, ahead of schedule, or behind schedule and by how many days?

Question 5

How is the schedule status determined?

Answer 5

Time scheduled for the work that had been performed -

actual time used to perform work = schedule status

Question 6

How is the cost status determined?

Answer 6

Earned value of work performed - actual cost of work performed = cost status

Question 7

How to determine EV curve?

Answer 7

Total number of man hours estimated X cumulative % completed = EV.

Question 8

What is ACWP?

Answer 8

actual cost of work performed. Plots actual point of hours or dollars when incurred, regardless of estimate.

Question 9

What is BCAC?

Answer 9

Budgeted cost at completion. This reflects total value of work package @ end of schedule.

Question 10

What is BCWP?

Answer 10

Budgeted cost of work performed. This plots the earned value of work performed when it was performed, regardless of actual cost.

Question 11

What is BCWS?

Answer 11

Budgeted cost of work performed. This is the estimated curve which reflects original estimate in hours or dollars and when the work was originally scheduled to have been completed

Question 12

CPI: Cost performance index =

Answer 12

BCWP/ACWP, < 1 = under budget

Question 13

CV: Cost variance =

Answer 13

BCWP-ACWP, < 1 = within budget

Question 14

SPI: Schedule performance index =

Answer 14

BCWP/BCWS, < 1 = ahead of schedule

Question 15

SV: Schedule variance =

Answer 15

BCWP - BCWS, < than 1 = ahead of schedule