Cost and Time Control Using the Earned Value Management (EVM) Method

Abstract

This study aims to analyze cost and time performance on the Sungai Kapih Subdistrict Office Construction Project in Samarinda City using the Earned Value Management (EVM) method. EVM is applied to evaluate the achievement of project progress relative to the planned budget and schedule by using key indicators: the Schedule Performance Index (SPI) and the Cost Performance Index (CPI). The analysis results indicate that project time performance experienced fluctuations, with the highest SPI of 1.74 occurring in week 7, reflecting excellent schedule performance. However, from week 8 to week 18, the SPI declined again to below 1, indicating delays, with the lowest value of 0.78 recorded in week 13. Meanwhile, cost performance, which was initially efficient with the highest CPI of 1.74 in week 2, also decreased starting from week 8 and reached its lowest point in week 13 at 0.78. The final project forecast shows that the Estimate at Completion (EAC) amounted to IDR 4,132,224,361.43, exceeding the initial contract value of IDR 3,599,755,960.36, indicating a projected cost overrun of IDR 532,468,401.07. Furthermore, the estimated time for project completion (Estimate at Schedule) indicates that the project will be completed in 27 weeks, which is 3 weeks later than the initial plan of 24 weeks. Thus, the EVM method illustrates that this project experienced a decline in efficiency during the second half of its implementation, resulting in schedule delays and cost overruns beyond the original budget.