EVM implementation: a focus on the function of the “contractual” CBS (CCBS).

Published by Massimoluigi Casinelli on

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).

Attribuito a Apollodoro di Damasco – Conrad Cichorius: “Die Reliefs der Traianssäule”, Zweiter Tafelband: “Die Reliefs des Zweiten Dakischen

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.

Categories: Earned Value Management
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Massimoluigi Casinelli

I am a chartered civil engineer and certified CCP (cost engineering and total cost management) at AACE International, with thirty years of experience in project management of the construction sector. I deliver expert planning, programme management and project controls on multibillions-Euro infrastructure programmes, including highways and railways, metro, air terminals and complex buildings (commercial, residential, schools), with some experience in oil & gas and power. I worked in advanced contexts of project management (from matrix organizations of EPC contractors to large employers organized to manage complex capital projects), by undertaking various roles in the field of project management / controls and contract management; this diverse range of experiences allowed me to gain knowledge on the various components of project controls (schedule, cost estimating, budgeting and cost control, progress and performance measurement, risk and claim management). I am an Italian citizen, currently in Italy.

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