EVM implementation: a focus on the function of the “contractual” CBS (CCBS).
If a Client wishes the full implementation of an EVM system, he should design the project controls system well in advance, before the tender phase, in order to translate it into the contractual requirements and into the instructions to bidders.
This post focus on a key element for EVM implementation: the contractual CBS (cost breakdown structure).
Contractual CBS (CCBS): a key element to implement an Earned Value Management System
The scheme below focuses on a key element: the definition of the contractual CBS (CCBS), which embeds the PMB (performance measurement baseline) and the “key concept” of Control Account and its components: Work Packages and Planning Activities, which should be managed differently into the Baseline.
EVM implementation entails the definitions of specific algorithms to measure “earned value” of the different types of Work Packages. This should certainly be addressed properly into the project controls requirements, Cost engineering offers different valuable algorithms to assess the “progress” of engineering, procurement, “construction” and testing work packages.
I worked on the development of project controls requirements of infrastructures and buildings projects and I have seen that this specific element is often not properly addressed, by affecting the effectiveness of the whole “system”. It is therefore fundamental defining clear progress measurement specifications.