Evaluating the Effectiveness of Earned Value Management (EVM) in Enhancing Financial Performance and Cost Control in Large-Scale Construction Projects

Abstract

Earned Value Management (EVM) is widely recognized as an effective project management technique for integrating cost, schedule, and scope control in construction projects. Due to the complexity, large budgets, and long execution periods of large-scale construction projects, achieving effective financial performance and cost control remains a significant challenge for project managers. This study aims to evaluate the effectiveness of Earned Value Management (EVM) in improving financial performance and enhancing cost control in large-scale construction projects.

The research adopts an analytical approach based on the evaluation of key EVM indicators such as Cost Performance Index (CPI), Schedule Performance Index (SPI), and Variance Analysis. Data are collected from selected large-scale construction projects and analyzed to assess the impact of EVM implementation on budget adherence and financial efficiency. The findings indicate that the systematic application of EVM contributes significantly to early detection of cost overruns, improved financial decision-making, and enhanced project financial performance.

The results of this study highlight the importance of integrating Earned Value Management into financial control systems of large-scale construction projects and provide practical insights for project managers and financial planners seeking to improve cost efficiency and overall project success.