Cost Estimation using EVA for UK Construction Industry

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

The objective of this article is to present and discuss the main factors involved in the use of Earned Value Analysis (EVA) in the cost management of civil construction projects. These factors include advantages and disadvantages, difficulties and benefits, problems and solutions and criteria and results based on the experience of a real case study in Brazil.

EVA was applied in the civil construction of an indoors amusement park, named Monica Park, inside the Citta America Shopping Center, in Rio de Janeiro, Brazil. The park has 30 attractions, covers an area of 10,000 square meters was built in 10 months from January to October 2000, for US$ 5 million.

The case study was is documented with reports, graphs, analyses and comments. A critical review of the application of EVA for the Amusement Park is provided in this paper. It shows that EVA had a relevant role in the integrated management of the project scope, time, progress, cost and risks and the procurement of the main project supplies and services.

EVA contributed to the success of the case study project which finished on time and on budget. The findings of the case study will contribute to the further use of EVA on other projects in Brazil by identifying the main problems and solutions. The case study results are analysed and the article concludes with 10 recommended steps for future implementation of the EVA process.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

1. INTRODUCTION7

Background of the Study7

Problem Statement8

Purpose of the Study9

Research Hypothesis9

Significance of the Study9

Structure of the thesis10

2. RESEARCH METHODS13

Research Design13

Quantitative Data Analysis15

Variables of the Study15

Data Analysis16

Confidentiality16

Validity16

Reliability17

Ethical Considerations18

3. LITERATURE REVIEW19

Introduction19

Basic Concept of EVA19

Overview of construction efficiency Theory Development21

Definition of construction efficiency27

Construction efficiency Philosophy29

EVA Applied To Monica Amusement Park Project30

Plan Do-Check-Act (PDCA) cycle34

Primary Elements of a TOM Implementation Model36

Need for construction efficiency in the amusement park project Industry38

Chase's Model: Effective construction efficiency Process for Construction40

Strange and Vaughn: Implementing construction efficiency in a General Contracting Firm41

Culp, Smith and Abbott Model: Implementing construction efficiency in a Consulting Engineering Firm42

Literature Review Summary43

4. DATA COLLECTION46

5. DISCUSSION & RESULTS48

Introduction48

Data Analysis48

Descriptive Statistics48

Correlation Analysis52

Hypothesis Testing59

Critical Analysis of EVA in Monica Park Project60

Steps to Successful EVA Implementation62

Project Characteristics63

Total Quality Management Approaches66

Summary68

6. DISCUSSION AND CONCLUSION69

Review of Study Objectives and Goals69

Factors That Influence the Use of construction ...