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Synergy Between People, Process and Technology
Synergy Between People, Process and Technology
People
Doing Work!
WIN
Technology
Automation
Process
Helps People Perform the
How People Get Work Done!!
Work!!!
Table of Contents
Table of Contents i
List of Tables iv
Declaration v
Abstract vi
1. CHAPTER 1 : INTRODUCTION 1
1.4. Methodology 4
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Synergy between People, Process and Technology for Post-Contract Stage Automated Earned
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3. CHAPTER 3 : Research Methodology 26
3.1. Introduction 26
3.5. Conclusion 28
5.1. Conclusion 63
5.2. Recommendations 64
6. CHAPTER 6 : References 65
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List of Figures
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List of Tables
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Declaration
I Anas Tharayil Kunhimon, confirm that this research paper is submitted for the purpose of
assessment to dissertation of my MSc in Commercial Management and Quantity Surveying, it is my
own work and is expressed in my own words.
Any use made in this dissertation from the works of other authors in any from (e.g. ideas, theories,
texts, table, figure, etc.) have been properly acknowledge at their point of use. A full list of references
has been included as part of this report.
This dissertation topic has similar with my previous coursework for CPIT (Construction Practice and
Information Technology) submitted on 05 April 2019, so the dissertation words similarities with that
coursework will exist in the some sections.
Signature …………………………………
Date …………………………………………
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Synergy between People, Process and Technology for Post-Contract Stage Automated Earned
Value Management System in UAE Building Construction Sector 2020
Synergy between People, Process and Technology for Post-Contract Stage Automated
Earned Value Management System in UAE Building Construction Sector
___________________________________________________________________________
Abstract
The synergy between the people, process, and technology is important and crucial for any
implementation and effective use to get intended purpose and maximum benefit, as the innovations
and implementation first motive is best RIO (Retune of Investment), in the construction industry the
post-contract stage projects control in the construction organization is still nightmare and not matured
enough, where that area as contractor projects control process is the direct impact how the project will
conclude, as in the construction projects completion with over budget and/or behind the schedule
becoming like a fashion, which lead to the construction organization loss, shutdown the contracting
business, and some will be in bankrupt. In this era the cause is not unviability of the effective and
efficient post-contract stage constriction organization suitable technique, process, and technology, the
real cause is how best is integrated, automated, and managed, in this the PPT (People, Process, and
Technology) come into play, and it doesn’t matter people, process technology well individual part,
which will not make the success, the success laid on the synergy between the people, process, and
technology based on the importance for each in the process. The Earned Value Management System
(EVMS) is a project management technique to plan, monitor, and control the projects at any point in
time, which is proven method using as project control technique, the research is address required
synergy between the people, process, and technology for the Earned Value Management System
(EVMS) implementation and effective use at the post-contract stage in the construction organization
in the United Arab Emirates (UAE), described in the five chapters, the research carry out in the form
of literature review, case study, expert interviews, sleeted professional questionnaire survey, and
discussed with conclusion, as motivation while during this research in the conclusion part, shortly
described proposed model of the Building Information Modeling integration with Earned Value
Management System (EVMS) in the constriction execution phase to capture the accurate actual
progress, as the research proved that Earned Value Management System (EVMS) success key element
and same time failure is due to inaccuracy of the Earned Value, which is depending on the accuracy of
the actual progress, though there is shortcomings due to the inaccuracy of Planned Value and Actual
Cost, but compare to Earned Value it is less, and Earned Value accuracy which come from accuracy
actual progress reporting will be tackled through proper place and synergize people, process, and
technology.
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1. CHAPTER 1: INTRODUCTION
The post-contract stage effective projects control is crucial for successful completion and handing-
over of construction projects, where the majority of the construction projects are take longer to finish
than scheduled completion time and/or complete with over budget (HANY ABD ELSHAKOUR; AL-
SULAIHI; AL-GAHTANI, 2013). The construction business one of the major role in any country
development, and the construction sector contribution to the UAE economy significantly high,
according to the UAE 2017 annual economic report (25th edition)(ECONOMY, 2017) the
construction and building sector contribution to the GDP is 10.3 % in 2016. The construction business
is very risky business and there are many risk are involved in the UAE construction industry, as in
internal and external, regardless the new information technologies such as ERP systems and business
intelligence reporting are introduced to the UAE construction sector same like other sector to in
enhance the efficiency and productivity through EVM process to deliver the projects within budget
and scheduled duration.
The accuracy as-built data is very essential to produce the accurate project performance indicators
(PII) for eared value management reports (NAVON, 2005). Moreover, the accurate data is required
not only to monitor and control the current projects, but also to update the historic data and update
benchmarking for future use (NAVON; SACKS, 2007).
The EVM has been introduced by the US Department of defense in 1960 (VANHOUCKE, 2009) and
since it is using industry, also the recent surveys and studies identified that EVM is still proven viable
technique in projects control process and widely using all the industry in globally (BATSELIER;
VANHOUCKE, 2017). And the recent years like all the process the projects control process also
innovate to automated projects control process, but the in construction industry the successful
implementation of automated projects control process is still challenging, mainly the building
construction sector compare to other construction sector (Infrastructure, Oil & Gas, etc.). As per the
study automated projects performance control (APPC) identified that expected accuracy of automated
system in building construction is +/- 10-20% and the road construction is +/- 4-5% (ISAAC;
NAVON, 2014).
The essential of the any report is accuracy of data, and as-built data acquisition from construction site
is still nightmare (CHEUNG; SUEN; CHEUNG, 2004; VANHOUCKE, 2014). However, many
technologies such as bar coding, Radio Frequency Identification (RFID), 3D laser scanning,
Photogrammetry, Multimedia, and Pen-based computers, but the challenges are the successful
implementation and effective use.
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1.2. Justification of the topics;
Any innovations and new technology implementations indeed purpose is to get maximum benefit
from that innovations and implementations, in EVMS has many benefits in the same time the
success of EVMS is depends to many sources factors. In view of the various previous studies,
surveys and literatures conducted by industry expert, the following 13 key benefits of the EVMS
and 10 success factors.
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9) Motivation of team members to use EVMS (CROWDER; BERNARD;
CENTERS; KIM; WELLS JR; DUFFEY, 2003).
10) Sufficient organization’s resources for EVM implementation(ABBA; LUKAS;
CCE, 2008).
The aim of this research to assess though the argument and criticism of the literature reviews and idea
of this dissertation, to know more about dissertation topic Synergy between People, Process and
Technology for Post-Contract Stage Automated Earned Value Management System in UAE Building
Construction Sector.
To find out and analysis how matured the UAE construction industry benefited from the
Earned Value Management System (EVMS) for projects control process.
To find out and analysis what is real cause that Earned Value Management System (EVMS)
system failure in construction sectors.
To find out and analysis the Synergy of People, Process and Technology in the Earned
Value Management System (EVMS) implementation and effective use.
To find out and analysis based on the expert opinions and professionals survey for
enhancement of Earned Value Management System (EVMS) usage for projects control
process.
To find out and analysis the effective and efficient automation requirements for Earned
Value Management System (EVMS) in construction industry.
1.4. Methodology;
The research dissertation is contain five main chapter (1 to 5) and sixth chapter the references, the
chapter 1 is introduction of the topic and how the research preformed, the chapter 2 is profound
literature reviews, the chapter 3 address in detail that research methods is general and used in the
research dissertation, the chapter 4 is core of research data analysis and discussion via case study,
expert interviews, and questionnaire survey, the chapter 5 is conclusion, recommendations and
limitations address the future studies requirements of the topics, and described proposed pilot model
of BIM Integration for EVMS.
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2. CHAPTER 2: LITERATURE REVIEW
As result of aforesaid survey the level EVMS usage is not a positive indication that UAE
construction industries still not matured and bother to efficiently use the EVMS, as well as the
survey found the only 29 % always using the EVMS for decision making for UAE construction
industry projects control process.
47%
38%
15%
0%
0%
29%
3%
0%
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The above evident that UAE construction industry required more matured to successfully
implement and efficiently utilize the EVMS to benefit the EVMS intended purpose.
Based on the same survey (MORAD; EL-SAYEGH) shows Table 1 weightage of benefit of the
EVMS, and Table 2 weightage of success factors of EVMS, as weightage consider 1 to 5.
6 Efficient procedures & processes for EVM implementation 4.18 Process Related
In view of the above the Table 2 highlighted and below Figure 3, shows that EVMS success factors
is categorized into three People, Process, and Technology, as noted in the Chapter 1 this is core of
this study, as the despite of the other factors due to industry change and client/projects changes
(ALVARADO; SILVERMAN; WILSON, 2005), the People, Process, and Technology is general
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factor can tackle to mitigate the difficulties of EVMS successful implementation and effective use
for projects control in the construction sector(KIM; WELLS JR; DUFFEY, 2003).
Out of 10 success factor 6 is related to people with 60.75 %, and 2 is related to process with
20.10%, and 2 is related to technology with 19.15%.
19.15%
20.10%
60.75%
The Earned Value Management System (EVMS) is logical methodology which is Earned Value
(EV) is primary tool for incorporating the cost, schedule, and other perimeters(WILLEMS;
VANHOUCKE, 2015). The project manager allows answering the following quotation through
EVMS;(PROJECT MANAGEMENT INSTITUTE, 2017)
While finding all the above three in single approach it will give the project manager border idea of
the project status and prediction of completion stage, which can be complete on time and within the
budget or over the budget and/or behind the schedule. In order the project manager to take required
measures in early stage and timely manner, to mitigate and avoid the project failure.
In the earned value management technique is relate through three matrices such as Planned Value
(PV), Earned Value (EV), Actual Cost (AC) which will identify the Cost Variance (CV), Cost
Performance Index (CPI), Schedule Variance (SV), and Schedule Performance Index (SPI) the
figure 2.1 easily describe earned value management process(VANHOUCKE, 2014).
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The Planned Value (PV) is forecasted value based on the baseline programme and budgeted
cost, as the planned value called also budgeted cost of works scheduled
(BCWS)(VANHOUCKE, 2014). In principle this planned value should not be changed after
confirmed and consent thought the life of the project in order to fix the point of reference to
measure. But, when the project performance deviate from the dramatically from the original
baseline planned value, it might revised to planned values based on the changes to have
appropriate planned value for effective and efficient EVM administration.
In the construction industry it is very difficult to real on the original baseline planned value
entire duration due to many reasons, mainly the vast changes in the scope of works, which
experienced in the UAE building construction sector very obviously mainly due to choosing
inappropriate procurement routes, without properly considering the stage of project as per
RIBA PoW (Plan of Work).
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The Actual Cost (AC) is the cumulative amount of cost consumed in point in time, as actual
cost called also actual cost of work performed (ACWP). The actual cost does not have the
relation with planned value in EVM(VANHOUCKE, 2014). It is the real expenditure from the
accounts, the there are many EPR software usually using to record the actual cost, about the
ERP software descried in following heading. The recording the actual cost not only for the
EVM process, also is database for future tender estimation and benchmarking.
The Earned Value (EV) is amount budgeted to performing works that was completed in point
in time, as the earned value called also budgeted cost of work performed (BCWP). As
mentioned above the earned value is fundamental of the earned value management approach.
In this era using much integrated project management software (Primavera, SAP, CCS, etc.)
to generate the earned value based on the baseline schedule and budget.
The main issue by generating the earned value is how accurate the data entry, in construction
projects which is very crucial and challenging, hence many organization using various
automated data acquisition process such as bar coding, Radio Frequency Identification
(RFID), 3D laser scanning, Photogrammetry, Multimedia, and Pen-based computers(EL-
OMARI; MOSELHI, 2011), but still the main challenge is proper implementation and
effective use.
The Cost Variance (CV) and Cost Performance Index (CPI) will identify the cost deviation as
under budget or over budget at any point in time, the cost variance will calculate by
subtracting the Earned Value (EV) from Actual Cost (AC) and the Cost Performance Index
(CPI) will calculate by devising the Earned Value (EV) by the Actual Cost (AC) refer above
Figure 4 and 5.
When Cost Variance (CV) indicate less than zero (0) that items is running with over budget
and Cost Variance (CV) indicate more than zero (0) that items running with under budget,
and if the Cost Variance (CV) indicate zero (0) that items running on budget.
When Cost Performance Index (CPI) indicate less than one (1) that items is running with over
budget and Cost Performance Index (CPI) indicate more than one(1) that items running with
under budget, and if the Cost Performance Index (CPI) indicate one (1) that items running on
budget.
For example aforesaid same activity EV is AED 100,000.00 and AC is 125,000.00, so the CPI
is 0.80 (100,000.00/125,000.00) it is mean that activity is over the budget.
The Cost Variance (CV) and Cost Performance Index (CPI) will provide the project manager
to take necessary actions decisions based on the value at any point in time to control those
items. Such as check the divisions against the budget may due to the variance of those items
unit rate due to market inflations/deflation, variance of those items actual quantity.
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The Schedule Variance (SV) and Schedule Performance Index (SPI) will identify the
schedule deviation as behind schedule or ahead schedule at any point in time, the schedule
variance will calculate by subtracting the Earned Value (EV) from Planned Value (PV) and
the Schedule Performance Index (SPI) will calculate by devising the Earned Value (EV) by
the Planned Value (PV) refer above Figure 4 and 5.
When Schedule Variance (SV) indicate less than zero (0) that items is running with behind
schedule and Schedule Variance (SV) indicate more than zero (0) that items running with
ahead schedule , and if the Schedule Variance (SV) indicate zero (0) that items running on
schedule.
For example aforesaid same activity EV is AED 100,000.00 and PV is 75,000.00, so the CV
is positive AED 25,000.00 (100,000.00-75,000.00) it is mean that activity is ahead schedule.
When Schedule Performance Index (SPI) indicate less than one (1) that items is running with
behind schedule and Schedule Performance Index (SPI) indicate more than one(1) that items
running with ahead schedule, and if the Schedule Performance Index (SPI) indicate one (1)
that items running on schedule.
For example aforesaid same activity EV is AED 100,000.00 and PV is 75,000.00, so the CPI
is 1.33 (100,000.00/75,000.00) it is mean that activity is over the budget.
The Schedule Variance (SV) and Schedule Performance Index (SPI) will provide the project
manager to take necessary decisions based on the value at any point in time to control those
items. Such as check the divisions against the budget may due to the variance of productivity,
de-scope budget items.
The Information and Communication Technology (ICT) has the major role in the all the industry
from the early 1980s(LAITH; SADI; ADEL, 2017), which is evident that due to the
implementation of ICT is dramatically enhanced the efficiency and productivity in the business.
Like the all other industry the construction industry also applied the information and
communication technology in their activities, which brings around 35% of cost reduction, in
addition to that the information and communication technology is forever database as well as its
reduce the carbon footprints and resource(O'MAHONY; ROBINSON, 2003).
In the era of the construction sector are well matured about the information and communication
technology and its effective use, in all the stages such designing, procurement, construction,
handover and closeout, and In Use. It shows the eagerness to innovate new technologies to more
enhance the process get better benefit eventually for RoI (Retune on Investment).
There are many information and communication technology now using the construction industry
such as Building Information Modeling (BIM), Just-in-Time (JIT), Enterprise Resource Planning
(ERP), Business Intelligence (BI), automated data acquisition, etc. Furthermore, as reported by
BBC about 35% of current jobs in the UK are at high of automation over the coming 20 years,
according to researchers at Oxford University and Deloitte. However, this research in the context
of UAE building construction sector but the above data from UK is giving indication.
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This opportunity as industry in eagerness to adopt the better information and communication
technology such as artificial intelligence (AI), robotics, quantum computing, etc.(BOB
THOMPSON, 2017), which hope positive impact in the construction sector in this era and
following as well, as the industry in well matured to invest and adopt the new inventions.
The Enterprise Resource Planning (ERP) is a set of software applications that are intended to
integrate and streamline business processes(VOGEL, 2005), to support the organization resource
planning and effective use. The ERP is part of the enterprise computing which is IT assets and
business strategy. Its contain the sets of applications such as Customer Resource Management
(CRM), the ERP was the first and still the core set of application for most organization(VOGEL,
2005), as backbone of the organization.
Since, many organizations are developing their own ERP software with their required level to
properly implement, but to developing the costume made software is required highest capital cost
and very competitive IT support tram. However, the organizations are ready to invest for that to
have successful ERP system to support their business as better RoI (Retune on Investment) and
successful completion and handover the projects within the budget and on time with client
satisfaction, which is the key objective of any origination strategy. The figure 2.4 shows the ideal
processes of ERP system in construction industry.
The Business Intelligence (BI) is systematic approach by collecting, processing, and analyzing the
data, for the business organization to evaluate the result for their effective and efficient business
strategy. The Fig. 2.2 shows the overall view of the business intelligence.
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The BI applications include the decision making support, query and reporting tools, online
analytical processing (OLAP) and data mining as well as the forecasting systems. However,
eventually result by implementing the BI are in depth analysis, refining and concentrating a large
number of BI to identify the performance indicators and organizational knowledge(DRAGOS;
VLAD; IULIA, 2014).
The BI is does not provide advise how to make the right decisions, but it will help to understand
the figures and decisions they can take in for analysis, for the corrective actions(BASSIONI;
PRICE; HASSAN, 2004).
The business organizations will collect the data through various systems such as ERP, CRM,
SCM, etc. accordingly the BI will collecting, processing, and analyzing the data to help the better
decision making(KADOLI; PATIL; MANE; SHINDE et al., 2014). The Fig. 8 shows the ideal
processes of the business intelligence.
In the construction sector many software are using for business intelligence reporting such as SAP,
Sage 300 BI, Oracle BI, etc.
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2.4.3. Building Information Modelling ;
“Everything in BIM” in this era of building construction industry that word famous, and its
facts, that Building Information Modeling is essential in the building construction industry and
many Construction Contracts and Government regulations enforce the BIM as contractual
requirements(AZHAR, 2011). The BIM using from the strategic stage (Stage 0 of RIBA PoW)
to Use (Stage 7 of RIBA PoW)(RIBA, 2013).
The various level of BIM represents the level of details and information, refer below Figure 9,
and now the industry think and explore about beyond BIM(KALAY; SCHAUMANN; HONG;
SIMEONE, 2015).
Several researches have proved the potential of combining the two concepts in construction
management. For example, in Japan, (KIM; BENGHI; DAWOOD; JUNG et al.) programmed a 5
Dimensional (5D) tool based on EVM which allows determining real-time schedule and real-time
cost by managing schedule and cost simultaneously. Another approach by tried to implement
EVM in Bridge Information Modeling (BrIM) which they defined as an intelligent representation
of bridges gathering all information needed about bridges through their whole lifecycle
(ELGEHANI; RASHID; ELHAKEEM). They presented a BIM-based cost estimate application
which integrates the EV concept to control cost and time during the execution phase of the
project. Figure 10 shows the process flow of BIM and EVMS ingratiation.
But the this process in MS excel the date exchange and required more manual date entry and,
which is still the required to be avoided to have fully automated process. Various recent studies
and inventions shows that progression to tackle this issue by implement more automated BIM and
EVMS through 5D BIM in various software platforms (Revit, CostX, CCS Candy, Oracle
primavera etc.) with software exchange platform for various software.
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Figure 10 – BIM and EVMS Process Flow Chart (ELGEHANI; RASHID; ELHAKEEM)
The accuracy of the data is the core of the earned value management system (EVMS) like any
other method and technology, as reported in The Global Information Technology Report
2016(BALLER; DUTTA; LANVIN, 2016) published by World Entomic Forum the data accuracy
is essential for accuracy of the output as report, which will be used for decision making,
strategic changes, benchmarking, innovation.
The data collection and accuracy of the data is still an key pitfall in the construction sector
(NITITHAMYONG; SKIBNIEWSKI, 2006), though various technology as described below
are in place to enhance the data collection and improve data accuracy(BATSELIER;
VANHOUCKE, 2015). In specific to the data for earned value management system (EVMS) the
accuracy of data is essential to derive the accurate variance (Cost and Schedule) and
performance indicators (Cost and Schedule), in addition to the accuracy the data collection for
earned value management system (EVMS) is nightmare.
In the earned value management system (EVMS) key three parameters are Planned Value (PV),
Earned Value (EV), and Actual Cost (AC), for this three parameters data required from various
stages, various departments. As briefed below these three parameters data requirements.
In all about the final data’s required for earned value management system (EVMS) is chain of
other data’s; hence, it is important to have all those data’s in that chain are accurate. Otherwise,
may have very accurate data in some element (i.e. costing, quantity) in the same other data may
have very less accurate (i.e. productivity, actual progress, unit rate), this which are integrating to
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get earned value management system (EVMS) three key parameters. So, the some data’s are
very accurate (i.e. costing, quantity) can’t consider the earned value management system
(EVMS) three key parameters are very accurate, because the other data used to derive the same
are less accurate (i.e. productivity, actual progress, unit rate).
Planned Value (PV); as explained in detail above the Planned Value (PV) is forecasted value
based on the baseline programme and budgeted cost, the two elements are baseline programme
and budgeted cost, integration of the two elements will generate the Planned Value
(PV)(CHEN; CHEN; LIN, 2016). So, the accuracy of the baseline programme and budgeted
cost as well as the effectives of integration will be deciding the accuracy of Planned Value
(PV).
The baseline programme is depending accuracy of other set of data’s such as Work
Breakdown Structure, scope/activities allocation, duration of the activities, planned
productivity, etc(CHEN, 2014). the various software using for baseline programme, mainly in
UAE building construction sector using Oracle Primavera. The baseline programme will be
create by planning department, but various departments coordination are required to build
accurate baseline programme such as Project Manager, Technical Department, Commercial
and Contractual Departments, Environment, Health and Safety Department, Logistic
Department, etc. so the accuracy of each department data’s are essential accurate baseline
programme.
Same as the budgeted cost is depending accuracy of other set of data’s such as budgeted unit
rate, quantity, productivity, factors and assumptions consider for costing, the various software
using for budgeting such as CCS Candy, CostX are mainly seen in the UAE building
construction sector. the budgeted cost will be generated by estimation
department(ODEYINKA), but various departments coordination are required to build accurate
budgeted cost such as Project Manager, Technical Department, Commercial and Contractual
Departments, Cost Control Department, Logistic Department, Benchmarking Department, etc.
so the accuracy of each department data’s are essential accurate budgeted cost.
Earned Value (EV); as explained in detail above the Earned Value (EV) is amount budgeted
to performing works that was completed in point in time, the Earned Value (EV) is out of the
three parameters (PV, EV, and AC) of earned value management system (EVMS) the Earned
Value (EV) is the key parameter(VANHOUCKE; VANDEVOORDE, 2008), as the both
variance (CV and SV) and performance indicators (CPI and SPI) are derive based on the
Earned Value (EV). As well as Earned Value (EV) is basis of the Earned Schedule (ES), the
Earned Schedule (ES) is extension to earned value management system (EVMS) introduced
in 2003(LIPKE, 2003), as described in detail Chapter 5.
Although the Earned Value (EV) is key parameter of earned value management system
(EVMS), the accuracy of the Earned Value (EV) is still a major pitfall of the failure of the
earned value management system (EVMS) in the worldwide construction industry(KIM;
BALLARD; NAENI; SHADROKH; SALEHIPOUR, 2011), including UAE building
construction industry.
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The Earned Value (EV) derived based on work performed (actual progress) and budgeted unit,
so the accuracy of this two elements will be depend the accuracy of the Earned Value (EV), the
budgeted unit accuracy is detailed above in the Planned Value (PV) budgeted cost.
The important is accuracy of work performed (actual progress), though various process
technologies are available to obtain and analyze the actual programs such as bar coding, Radio
Frequency Identification (RFID), 3D laser scanning, Photogrammetry, Multimedia, and Pen-
based computers(EL-OMARI; MOSELHI, 2011; OMAR; NEHDI, 2016), further innovation as
Location Based Management Systems (LBMS) in construction sector are under eager
implementation (KENLEY; SEPPÄNEN, 2006) as described in detail Chapter 4, but still the
construction sector facing the major pitfall for accrue the actual progress from the constriction
sites. It has internal and external factors as described in detail Chapter 4.
So, the actual data acquisition and analyzing has factual role in the accuracy of Earned Value
(EV); consequently, the successfulness of earned value management system (EVMS) in the
UAE building construction sector(AL-HAJJ; SAYERS, 2014).
Actual Cost (AC); as explained in detail above the Actual Cost (AC) is cumulative amount of
cost consumed in point in time, considering other above mentioned two parameters (PV and
EV) the actuation of Actual Cost (AC) and accuracy are high, because the process to obtain the
Actual Cost (AC) comparatively easy task(BATSELIER; VANHOUCKE, 2017).
The Actual Cost (AC) is from inventory book of finance department, but there are some
factors such as timely inventory as invoice posting, post the actual cost against appropriate
ledger of the items/material as budgeted, consider the accruals(KASIM; LIWAN;
SHAMSUDDIN; ZAINAL et al., 2012). For effective inventory the various Enterprise
Resource Planning (ERP) software’s are using the UAE construction industry for inventory
such CCS Build Smart, SAP, Oracle, ePromise, etc.
The Actual Cost (AC) is important factor for calculating the Estimated Cost to Complete
(ETC) and Estimated Cost at Completion (EAC), so the data accuracy of is Actual Cost (AC)
crucial for forecasting, in addition to the variance (CV and SV) and performance indicators
(CPI and SPI) results.
As argued(PRODAN; PRODAN; PURCAREA, 2015) the people, process and technology (PPT) is
the key elements for any innovations, implementations and successful executions, as the people,
process and technology (PPT) holistic approach(BUTTLES-VALDEZ; SVOLOU; VALDEZ, 2008)
to get maximum output benefit from the invest either it is innovations, implementations and
executions. The many authors argued (DAVE; KOSKELA; KAGIOGLOU; BERTELSEN; DUMAS;
VAN DER AALST; TER HOFSTEDE, 2005; ORLIKOWSKI; SCOTT, 2008) that this is golden
triangle key for success, refer Fig. 11.
This approach people, process and technology (PPT) is very old and not evident the root very clearly,
but in the various studies it is noted that initially highlighted in the 1964 in the Leavitt’s Model (LAU,
2010; LEAVITT; COOPER; LEAVITT; SHELLY, 1964; PETERS, 2014), the summary of Leavitt’s
Model change sequence described in Fig. 12.
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Source – Smart Sheet (What Is the People, Process, Technology Framework)
Figure 11- PPT Golden Triangle Figure 12- PPT Leavitt’s Model
However, this people, process and technology (PPT) approach are in place from many years in around
the world, but still there is required enhancements, related to required enhancement are studied and
analyzed for construction industry in specific to BIM (SHEE; PATHAK, 2006), and enhancement are
studied and analyzed in general to software and information technology, all this studies and analysis
reach and concluded in the one unique point, which is synergy between the people, process, and
technology.
As how place this three key elements will be success factor, and all are concluded as follows;
People First
Process Second
Technology Third
In basic finding and understanding as famous writer Mr. Alan Watts said “Technology is destructive
only in the hands of people who do not realize that they are one and the same process as the universe”
(DAVIS, 1990) and all the studies and researches found the same.
In is very important that synergy between the people, process, and technology should be critically
analyzed and placed in effectively based on the industries as well as in the same industry departments
/ trades.
So, it is evident that the same synergy between the people, process, and technology in Information
Technology (IT) industry will not be viable for other industries, such as construction industries. In the
construction itself the same synergy between the people, process, and technology of Building
Information Modeling (BIM) or Precast will not be suitable of other sections such as Projects Control
(i.e. Earned Value Management System)
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The above chapter 2.1 table 2 identified people, process, and technology against the success factors
of Earned Value Management System, on the synergy between the people, process, and technology
for Earned Value Management System are more described in detail on following sub-chapters.
People;
The most important accept because they are the one make actual difference. The right people
will lead to effectiveness, honesty, indignity, ethics, responsibility, etc. In contrary the wrong
people will lead to demotivated, dishonesty, unethical, etc. More importantly the people include
from bottom to top such as filed workers to top management, and all has their own importance,
by understanding the processes and delegate to subordinate and next level based proper process.
In the Earned Value Management System the people is first similar to very majority of the other
industry as well as department in the construction industry, as well as the above chapter 2.1 table
2 identified that out of ten EVMS success factors six is related to people. The people
involvement and importance are various levels at different stages of Earned Value Management
System procedure.
Basically the Earned Value Management System three key factors are Planned Value (PV),
Actual Cost (AC) and Earned Value (EV), so it is described below the people involvement and
importance at each of these key factors.
Planned Value (PV); as explained in detail above the Planned Value (PV) is
forecasted value based on the baseline programme and budgeted cost, the two
elements are baseline programme and budgeted cost, integration of the two
elements will generate the Planned Value (PV)(CHEN; CHEN; LIN, 2016), so the
people involvement and importance for Planned Value (PV) measuring stage is
very important and crucial, as the various departments representatives are
involved as follows for related tasks;
In addition to above various other departments such as contract dpt., logistic dpt. etc.
also involved during Planned Value (PV) process either during baseline programme
preparation and/or pricing.
So, the very keen knowledge and competency for the people involved is very
important to develop more accurate Planned Value (PV), otherwise the developed
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Planned Value (PV) will be not accurate which will be cause the Earned Value
Management System is invalid and not provided the intended purpose, and final
reports results such as variance (CV and SV) and performance indicators (CPI and
SPI) will be inaccurate and defective.
Earned Value (PV); as explained in detail above the Earned Value (EV) is
amount budgeted to performing works that was completed in point in time, the
Earned Value (EV) is out of the three parameters (PV, EV, and AC) of earned
value management system (EVMS) the Earned Value (EV) is the key
parameter(VANHOUCKE; VANDEVOORDE, 2008), and the people
involvement is very high important in the accurate Earned Value (EV) procedure,
as the basis of the Earned Value (EV) is actual progress and accurate data
collection for actual progress is nightmare.
The data collection for actual progress is still facing very crucial difficulty in the
construction industry (ZHAI; LIU; FELLOWS, 2014), mainly the building
construction industry, though various technologies are available, but the key issue
in that difficulty is people. It is very important to note that it is not due to only
technical competency, it is mainly the lack of awareness and lack of commitments
of the site execution teams such Construction Manager / Site Agents, Project
Engineers, Site Engineers, Foreman’s, etc. as they have not well aware and
committed about the Projects Control process.
So, it is very important and need more attention on this as it is matter of ethics and
honesty of the people involved to provide the actual progress data from the site,
the understating of people due diligence is impotent to get more accurate actual
progress data to generate the Earned Value (EV), otherwise the generated Earned
Value (EV) will be not accurate which will be cause the Earned Value
Management System is invalid and not provided the intended purpose, and final
reports results such as variance (CV and SV) and performance indicators (CPI and
SPI) will be inaccurate and defective.
Actual Cost (AC); as explained in detail above the Actual Cost (AC) is
cumulative amount of cost consumed in point in time, considering other above
mentioned two parameters (PV and EV) generating the Actual Cost (AC) and
accuracy are high, because the process to obtain the Actual Cost (AC)
comparatively easy task(BATSELIER; VANHOUCKE, 2017). Though the people
involved in the Actual Cost (AC) procedure is important to have the well
awareness about the Earned Value Management System.
Mainly the two stages for Actual Cost (AC) one is requisition stage, in this stage it
is import that cost controller/quantity surveyor used appropriate ledger code and
activity code, in second stage is invoice booking stage, the store team/finance
team who is booking the cost to make sure to book cost on timely manner as well
as against proper ledger code and activity code, otherwise in total cost will be
booked, but in construction industry thousands of activities and materials in place;
so the cost posting against appropriate code is very important.
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In that the aforesaid people involved for Actual Cost (AC) procedure awareness
and knowledge about ledger code activity code effective use is very important, in
addition to the Earned Value Management System awareness and knowledge,
otherwise the generated Actual Cost (AC) will be not accurate which will be cause
the Earned Value Management System is invalid and not provided the intended
purpose, and final reports results as Cost Variance (CV) and Cost Performance
indicator (CPI) will be inaccurate and defective.
Process ;
The second important in the innovation process, we create process, we deliver process, and we
sell process. People embed themselves in the projects to identify the challenges and solutions
with better process. If the process not understandable it will never give required output.
So the process should be feasible in terms of the procedures, required resources as with
minimum resources, user friendlily, to get the maximum benefit from any innovations,
implementations and executions (JAVAID; IQBAL). Otherwise, though the people part is
prefect but the process is not effective which will lead to disrupt the people involved and result
will be negative, as well as the process disruptions and reworks will demotivate the people
involved, which is one of the key reason of the construction industry failure (JAVERNICK-
WILL, 2012).
It is very important that how the stuff is done, it cannot be deep trial and error after implanting
with proper process, as well as the important for the continuation of that process future
innovation. As for same out result in same organization different people using different process
is not viable regardless the end result is same or not, it should be unique process to match
organization vision and strategy, otherwise it is contrary general principle of Integrated
Management System (IMS) (KANAPECKIENE; KAKLAUSKAS; ZAVADSKAS; SENIUT,
2010), as well the process shall comply with relevant global standards.
In the Earned Value Management System the process is second element similar to majority of
the other industry as well as department in the construction industry, as well as the above chapter
2.1 table 2 identified that out of ten EVMS success factors two is related to process. Though the
technology also has two success factors but considering the weightage of success factors the
process will 20.10% where the technology is only 19.15%. The process importance is various
levels at different stages of Earned Value Management System procedure.
Basically the Earned Value Management System three key factors are Planned Value (PV),
Actual Cost (AC) and Earned Value (EV), so it is described below the process importance at
each of these key factors.
Planned Value (PV); the process to generate Planned Value (PV) is ingratiation
between the schedule and cost, and in the construction sector process of this
ingratiation is very crucial as the thousands of activities in schedule based on
Work Breakdown Structure (WBS) and thousands of resources in the budget
estimate (MURTHY), it is extensive task itself generate the baseline programme
and budget estimate, and again the ingratiation of this two compounds.
So, the process will be very clearer and viable to generate the Planned Value (PV), as
ingratiation of programme activities with appropriate corresponding budgeted
items/resources, otherwise the programme activities and budgeted items will be
mismatched which will lead the generated Planned Value (PV) inaccurate;
consequentially the Earned Value Management System is invalid and not provided
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the intended purpose, and final reports results such as variance (CV and SV) and
performance indicators (CPI and SPI) will be inaccurate and defective.
Earned Value (EV); the process to generate the Earned Value (EV) is key
critical process in the Earned Value Management System, as the various process
are involved from budget creation to incorporate actual progress data into the
cost, it is noted that key issue of the Earned Value Management System failure
in the construction industry is due to inaccurate Earned Value (EV) generation
(VARGAS, 2003).
So, it is obvious that process of the Earned Value (EV) generating process
should be very clearer and strict monitoring required, as stated above the people
involved is from site foreman’s to planning managers. The main challenge is
actual data actuation process from site, as how good and effective that process
will be impact the result of the Earned Value (EV) (TURKAN; BOSCHÉ;
HAAS; HAAS, 2013). Also the process of incorporating the collected data into
the cost required effective and traceable process to have access at any time in
any point (i.e. activity, resource) to identify the slippage from Planned Value
(PV) to take necessary measures (COLIN; MARTENS; VANHOUCKE;
WAUTERS, 2015) Otherwise the though the accurate actual progress data
getting from site but the process of incorporating with budget process not viable
it will lead the generated Earned Value (EV) inaccurate; consequentially the
Earned Value Management System is invalid and not provided the intended
purpose, and final reports results such as variance (CV and SV) and performance
indicators (CPI and SPI) will be inaccurate and defective.
Actual Cost (AC); the process to generate the Actual Cost (AC) will appear as
simple process but it is very powerful, the process should be very clear with
proper recodes (KIM; REINSCHMIDT, 2011), as the Actual Cost (AC) is not
only used to generate the Cost Variance (CV) and Cost Performance indicator
(CPI), also the Actual Cost (AC) will used to generate the Estimated Cost to
Complete and benchmarking for future projects tendering and budgeting.
In the Actual Cost (AC) process is start from the requisition to book the cost
upon deliver/work execute, also it is very important for the Actual Cost (AC)
process to consider the Material on Site cost and accruals for not book
inventories to have more accurate Actual Cost (AC), as it is critical issue in
construction industry facing the actual cost timely inventory issues (GROSS;
HARRIS; ROBERS, 1972)
So, though the Actual Cost (AC) will appear as simple process it should be very
clear and calculations process of accruals should be more accurate, otherwise
which will be cause the Earned Value Management System is invalid and not
provided the intended purpose, and final reports results as Cost Variance (CV) and
Cost Performance indicator (CPI) will be inaccurate and defective.
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Technology ;
It is the third aspects of any technological innovation process, with support of the technology
we evaluate, select, and implement the systems, as this era and upcoming all about
technology. The main important is we should evaluate the technological frequently to update
the technological day by day to keep our business strategy update, as in this era the
technological change and encashment are radically happening.
The technology is mainly Information Technology (IT) as digitization is one of the key factors
in every industry success and countries, as well as digitization has influence on the GDP
(SABBAGH; FRIEDRICH; EL-DARWICHE; SINGH et al., 2012). However, in the
construction industry the digitization is still not matured level, as reported in the Harvard
Business Review(GANDHI; KHANNA; RAMASWAMY, 2016)based on the survey the
construction industry is second lowest of digitization, where the lowest one is agriculture &
hunting, refer the Fig. 13. It can be consider the construction industry of digitization compare
the agriculture & hunting, as construction industry involved the experts, engineers, specialist
but still the digitization is very low.
Source – Harvard Business Review (Which Industries Are the Most Digital (and Why)?)
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Also, as described in the report THINK ACT for Digitization in the construction industry:
Building Europe's road to “Construction 4.0” (SCHOBER; HOFF; SOLD, 2016), though the
report is based on Europe, but the result will be applicable at very good level for UAE as well,
as the degree digital implantation in the various construction department/stage of construction
activities, refers the Fig. 14. It is evident that at the execution stage
(Production/construction) is the very weak degree of implementation; any of the
reported systems/ technology is not in the matured position.
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Though in the UAE is ranking twelfth position in the world digitization and technology
adaptation as reported in the World digital competitiveness 2019 by IMD (IMD, 2019), as well
as the UAE ranking is improve every year as 2015 report the rank was in twenty-two refer the
Fig. 15, so it is positive signal that UAE construction industry also get benefited from the
improvement of digitization and technology adaptation.
In the Earned Value Management System (EVMS) the technology is position at third place,
but the every stage of the process the various technology and software’s are using the to
generate the key factors of Earned Value Management System (EVMS) as Planned Value
(PV), Actual Cost (AC) and Earned Value (EV), as well as the final reports results such as
variance (CV and SV) and performance indicators (CPI and SPI), one of the key difficult is
that various platforms (i.e. software’s) using at different stage and the ingratiation and
automation of this various software’s are not always possible (ATTARZADEH; HOCK) in
the Earned Value Management System (EVMS), also there is no proven success single
software for Earned Value Management System (EVMS) in the construction industry.
So, the various software’s are using based on the internal department process and external
stakeholders (i.e. Client) at the various stage; described below the technologies using for
Planned Value (PV), Actual Cost (AC) and Earned Value (EV) creation.
Planned Value (PV); the Planned Value (PV) is the integration of schedule and
cost/budget (PINTO; PATANAKUL, 2017), UAE construction industry wildly
using the Oracle Primavera software for scheduling as which is most client
required as part of contract requirement. And Oracle Primavera is integrated
software for schedule and cost, but which not viable for contractor project
control process as Earned Value Management System (EVMS) Planned Value
(PV) creation, as the detailed budget with ledger, activity, resources doing other
software (i.e. CCS Candy, Costx, etc.) or still many companies using Microsoft
Excel for estimation and budgeting.
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So, the integration between budget and construction programme is one of the
main weakness in the Planned Value (PV) creation. The Chapter 5 is described
the suggestions to reduce and tackle the effect of this weakness.
Earned Value (EV); the Earned Value (EV) is the integration of actual progress from site
and budget, there is two main challenge involved in that first the suitable technology for actual
progress acquisition, though many technologies such as bar coding, Radio Frequency Identification
(RFID), 3D laser scanning, Photogrammetry, Multimedia, and Pen-based computers (EL-OMARI;
MOSELHI, 2011), and recently introduced 4D BIM and Augmented Reality (AR) (GOLPARVAR-
FARD; PEÑA-MORA; SAVARESE, 2009; PARK; LEE; KWON; WANG, 2013), but still the actual
progress data acquisition is prime weakness as the technologies are not suite and/or not matured to use
for complex building construction process.
The second issue is the actual progress integration with budget software’s suitability for construction,
as there is no proven successful software for such integration (LIN; MÜLLER; ZHU; LIU, 2019), as
the actual data acquisition software not match with budgeting software.
The Chapter 5 is described the suggestions and to reduce and tackle the effect of above said weakness.
Actual Value (AC); The Actual Cost is from account book, there are many more Enterprise Resource
Planning ERP software’s are using in the UAE construction sector, and still there is construction
companies in UAE using normal accounting software and Microsoft Excel for Actual Cost (AC).
The important point is the how efficiently Actual Cost (AC) booking against same ledger and activity
code used during requisition and corresponding activity at programme, which is prime weakness
facing for Actual Cost (AC) in the technology perspective (VOORDIJK; VAN LEUVEN; LAAN,
2003).
In addition to the same issue of Planned Value (PV) and Earned Value (EV) data integration between
the various software’s.
The Chapter 5 is described the suggestions and to reduce and tackle the effect of above said weakness.
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2.7. Summary of Literature Review ;
In view of the above literatures review it is more evident that synergy between people, process
and technology is key factor for successful implementation and effective use of automated
Earned Value Management System (EVMS) below Figure 16 is represent that synergy.
People
First
Successful
Process Implementation
Second Synergy and Effective Use
of Automated
EVMS.
Technology
Third
The further research, analysis and proposed model for successful automated Earned Value
Management System (EVMS) in the UAE building construction sector is described in detail following
Chapter 4 and 5.
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3. CHAPTER 3: RESEARCH METHODOLGY
3.1. Introduction;
This chapter is briefing that way this dissertation research undertaken, though it is not impact the
subject matter, but is absolute necessary to understand the way and process undertaken this
dissertation research for reader to understand and consider the limitations and recommendations while
review and may take any data or information from his research.
The researches carry out in this dissertation in three ways as Case Study, Experts Interview, and
Questionnaire Survey with selected professionals, as detailed in the below sections.
The aim of this research to assess though the argument and criticism of the literature reviews and idea
of this dissertation, to know more about dissertation topic in detail, as the famous American Inventor
Mr. Charles Kettering said the “Research means that you don’t know, but are willing to find out”.
To find out and analysis how matured the UAE construction industry benefited from the
Earned Value Management System (EVMS) for projects control process.
To find out and analysis what is real cause that Earned Value Management System (EVMS)
system failure in construction sectors.
To find out and analysis the Synergy of People, Process and Technology in the Earned
Value Management System (EVMS) implementation and effective use.
To find out and analysis based on the expert opinions and professionals survey for
enhancement of Earned Value Management System (EVMS) usage for projects control
process.
To find out and analysis the effective and efficient automation requirements for Earned
Value Management System (EVMS) in construction industry.
In general the research methodology is two type quantitative and qualitative the argument and
criticising via articles, journals, etc. is carrying various platforms more than 15 years and still
continuing based opinion of different authors, (AMARATUNGA; BALDRY; SARSHAR; NEWTON,
2002) is described research approach for built environment.
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Below Figure 17 summarize the brief comparison of quantitative and qualitative research model.
Source – Researchgate
As stated above the research undertaken in three approaches as follows, the research was earlier
planned in two approach and Case Study and Expert Interview, and questionnaire survey was not
planned for the research, but due to the limited number as only three of expert interview, the
questionnaire survey conducted with selected professionals from construction industry.
The Case Study selected based on the analysis undertaken to find out the appropriate case relevant to
dissertation topic, which provides value to aforesaid research aim and objectives. The Chapter 4 / 4.1
detailed the selected case study.
The expert’s interview was planned minimum 6 to 10 experts in from various level and sections of
constriction industry, but only 3 experts are participated, though those participated experts are
managerial level and highly experienced 18 to 25 years in the construction industry.
The 6 questions designed which will provides value to aforesaid research aim and objectives.
The experts interviews conducted based on the six prepared questions and ask their other opinions and
area of concerns for Earned Value Management System (EVMS) use for Contractor Projects Control
technique. Also, during the interview asked some general questions (i.e. Why, What, Where, etc.) in
relation to core six questions for their comprehensive response.
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The interview conducted with two experts via virtual and one expert face to face interview, each
interview took almost 30 minutes to 1 hour; some are responded in detail but other respond short
answers, the answers are paraphrase in the dissertation based the response. The Chapter 4 / 4.2
detailed.
As mentioned above the questionnaire survey was not planned for the research, but due to the limited
number of expert interview, the questionnaire survey conducted. The questionnaire survey sends 62
selected professionals and 44 professionals are participated. Since the send to selected professionals
the reliability of the participation and response are more accurate.
The survey questions design in three sections as follows and detailed in the Chapter 4 / 4.3
Questionnaire Survey section.
3.5. Conclusion;
The research is conducted to find out and analysis the aim and objective of the dissertation, it is
analysed as make augment and criticism between the research result each other and with literature
reviews in the Chapter 4, to fill the gap between the dissertation idea and realization with practicality
in the construction industry projects control process Earned Value Management System (EVMS)
maturity.
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4. CHAPTER 4: DATA ANALYSIS AND DISCUSSION
As described above chapter that the research done in three as case study, expert interview,
and questioner survey, detailed below sections.
Introduction;
This case study based on the one of prominent construction organization in the UAE
experienced risks and failures in their project control process during the execution stage,
which harshly impacted the organization cash-flow and financial strategy.
The organization was followed around 10 years the CVR (Cost Value Reconciliation)
technique for cost control process by monthly reporting model, the CVR provide identified
the variance between the cost and value after the costs are incurred, these shortcoming for
CVR as only recoding the costs as history without any comparison, mentoring, mitigation and
recovery plan. Hence, the management review various possibilities and decide to change the
cost control technique to Earned Value Analyses based technique and implement the Earned
Value Analyses based technique.
However, the new technique Earned Value Analyses based also noticed the shortcomings and
inaccuracy in reports due to the inaccuracy of actual progress data collection and analysis, in
addition the inappropriate baseline and forecast, actual cost posting issues.
The case study described in detail the following chapter the existing cost control technique
(i.e. CVR), and current Earned Value Analyses based technique and its shortcomings, also
proposed changes to tackle the shortcomings.
Background
The organization is Main Contractor head office located in the emirates of Abu Dhabi and
projects has all the emirates of UAE as well as outside the UAE, as part of Holding Company
has various sections such as pre-cast, aluminium and glazing, MEP, structural steel.
The organization has 16 on-going projects during the period consider in the case study, the
projects values as follows;
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For the case study considered the one of the iconic project located in the emirates of Dubai,
the project general details as follows;
The project is hotel and residential tower as three basement + one upper basement + ground
floor + 54 floors (4 podiums, 20 hotel floors, 27 residential floor + 3 floor swimming pool
and restaurants at top floor).
From the beginning of the project the organization management decide the consider this
project as pilot project to implement the Earned Value Analyses based technique for projects
control process instead on existing CVR technique. However, first 6 months existing CVR
report also prepared, described in detail following chapter/section.
The reporting period is every two months with full details to management, after 3 report it is
noticed that inconsistency and shortcomings in the reports compare to progress and actual
cost spending, various reasons are behind such as inaccuracy of actual progress data
collection and analysis, inappropriate baseline and forecast, actual cost posting.
The following chapters described the findings of that study, prior that below sections
described the brief about existing technique (i.e. CVR) and transformation to Earned Value
Analysis based technique.
The organization is using CCS Candy software for estimation and budgeting and CCS build
smart ERP system, the budget categorized as follows;
1. Staff
2. Labour
3. Direct Material
4. Formwork, Plant & Equipment
5. Subcontractor
6. Indirect & Temporary Items
Upon award the project the Estimation department will prepare the budget based on aforesaid
categorize, and issue for Management Approval. Once the budget approved by management
the budget file will issue to Cost Control department.
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The cost control department consultation with project team (Project Director/ Project
Manager, Commercial Manager, Quantity Surveyor) will re-model the budget by allocating
appropriate codes (Ledger Code, Activity Code, Resource Code) and adjust quantity based on
drawings, consider that project are lump-sum, which crate the execution budget and cost
control department upload that budget into ERP system and issue to project.
As mentioned in the introduction the existing cost control technique was CVR (Cost Value
Reconciliation) that compare the actual expenditure (Cost) with allowable cost (Value) and
identify only the variance between Cost and Value, without any comparison with plan and no
forecasts, as it is simply recoding the cost after its spend. For example below table (Table 4)
and Chart (Figure 18) shows the same project CVR for first 6 months and trends of the
variance.
Period A B C (A-B)
Value Cost Variance
(Allowable Cost) (Actual
Expenditure)
Jul-17 362,682 12,089 350,593
Aug-17 2,337,805 77,927 2,259,878
Sep-17 5,908,975 289,404 5,619,571
Oct-17 15,436,874 1,715,310 13,721,563
Nov-17 23,103,003 3,728,210 19,374,793
Dec-17 40,372,708 12,749,563 27,623,145
Jan-18 51,546,974 19,519,313 32,027,661
Feb-18 72,929,964 32,161,745 40,768,219
Mar-18 90,441,790 44,249,606 46,192,183
Apr-18 115,718,577 62,710,822 53,007,755
May-18 138,887,418 79,207,489 59,679,928
Jun-18 168,609,846 104,271,700 64,338,146
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300,000,000
250,000,000
Cost Value
(Actual Expenditure) (Allowable Cost)
200,000,000
150,000,000
100,000,000
50,000,000
0
Jul-17
Mar-18
Nov-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Sep-17
Jan-18
May-18
Jun-18
Figure 18 – CVR Report Graph – July 2017 to June 2018
Such CVR reports and results will shows the positive up to certain stage and after start to
negative, where the mitigation measure and recovery are mostly not possible at that stage,
and the identification of cause are nightmare and not feasible, as the no base/plan to track and
trace, this faced many project run over the budget and end with loss, some project loss cover
in the under the profit margin, but majority of the projects end with total loss to organization.
As well as once its impact the cash-flow by default it’s adversely cause the delay and
disruption and reduce the rate of progress.
After the expert study and advice that many of those completed and running project could be
avoided by taking the necessary mitigation measure, recovery plan, forecasts, as well as the
management required to measure the project management team performance for their KPI
(Key Performance Indicator) as per staff evaluation, without plan the compression not
possible.
The transformation to earned value analysis based projects control technique after
management consider that earned value analysis technique is better than existing CVR
technique, though the management are aware the basic issues of the earned value analysis
implantation and use in the construction industry, the Earned Value Management is described
in very detail in above chapters (Literature review); hence, same not repeating this section.
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As part of implementation of the effective project control process based on earned value
analysis, the management decide to build new department as Projects Control separated from
Operations department, as directly report to Management, as the earlier as Planning and Cost
Control department are different and under Operations department, below Figure 19 and
Figure 20 shows existing and new organization structure related to projects control.
Managment Managment
Operations
Dpt.
Operations Dpt.
Projects
Control Dpt.
Cost Control
Planning Dpt.
Dpt.
Cost Control
Planning Dpt.
Dpt.
This section describing in detail the procedures, result, and key issues notified after
implement and use the earned value analysis technique for above mentioned project.
Procedures
As earned value analysis key parameters are Planned Value (PV), Earned Value (EV), and
Actual Cost (AC) as below Figure 21 described formulas, in order to generate the elements
required various department involvements at various stages of the project post-contract
duration.
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Planned Value: Once the execution budget finalize with total amount of AED
1,046,728,971.96 based on following breakdown;
The project Quantity Surveyor works with project Planning Engineer and develops the
monthly Planned Values (PV) as ingratiation of budget and baseline programme.
The budget and programme in various software also the Budget Bill of Quantity structure and
baseline programme WBS/activity structure are not consistent; so, automation of budget and
baseline programme was impossible and which is one of the key issue faced the result, same
described in detail below result section.
As mentioned that automated single software technology for budget and baseline programme
is not available, the Planned Value create in manually by using MS excel, as consider the cost
loaded baseline programme parentages incorporate to budget, the below Figure 22 chart
shows the project first One year planned value, same period above consider in CVR and this
case study consider this period for all values.
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Earned Value: the Earned Value is generate by using estimation/budgeting software, as the
project actual progress will collect from monthly progress report submitted by Planning
Engineer, this actual progress will insert to the budgeting software valuation module by each
bill items based that item progress in the monthly report, this will automatically generate the
allowable budget (i.e. Earned Value) at Ledger Code level, as well as the Activity Code,
Resource Code level, but the report based on the Ledger Level.
Though, the Earned Value generating with very viable software technology which produce
the very accurate value at required level (i.e. Ledger Level), but there is serious issue
experienced in the report outcome due to inaccuracy of the Earned Value, which is identified
due to the actual progress reporting, same described in detail below result section.
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Actual Value: the Actual Cost exported from the ERP system based on the ledger codes, the
cost booking will be done by inventory and finance team in the ERP system.
Though, the Actual Value generating with very viable ERP software system which produce
the very accurate value at required level (i.e. Ledger Level), but there is still issue
experienced in the report outcome due to inaccuracy of the Actual Value, which is identified
due to the actual cost posting delayed, also the bulk delivery of materials on site, same
described in detail below result section.
The below Figure 25 shows the project first One year Actual Cost generated from ERP
system;
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Earned Value Analysis Report: the report prepared by project Quantity Surveyor based on
the above Earned Value Analysis key parameters generated, the report has company template
in the MS excel software designed and developed by Project Control Dpt. and approved by
Management.
The report updated and submitted monthly, the report has mainly two sheet one overall
summary (Figure 26) and budget category wise details (Figure 27), the category wise details
also indicate the Estimated Cost to Complete (ETC) and Estimated Cost at Completion
(EAC), and anticipated performance index and variance at completion based on the report
stage status and anticipations of project completion.
Once done the report period of one year (July 2017 – June 2018) the inaccuracy and
shortcomings for the Earned Value Analysis Report are notified, there are various reasons at
each stage to generate the Earned Value Analysis key parameters (Planned Value, Earned
Value, Actual Cost).
It is noted that key issue in Earned Value because of inaccurate actual progress reporting,
though other issue has from Planned Value and Actual Cost, the key issues and proposed
solutions described in detail following sections of this chapter.
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F
C
E
A
G
Sl No.
Costs
(SV)
(CV)
(Forecast)
Index (SPI)
Index (CPI)
Actual Cost
-
200,000,000.00
400,000,000.00
600,000,000.00
800,000,000.00
1,000,000,000.00
1,200,000,000.00
Cost Variance
Planned Value
Project Duration
(Earned Value)
Allowable Cost
Description
Cost Performed
Schedule Variance
Schedule Performed
0.35 (679,243.68) 30.00 350,592.76 362,682.17 12,089.41 1,041,925.85 Jul-17
Period Ending : - Jun-18
(Forecast)
25,006,220.35 Dec-17
Planned Value
2.08 37,911,649.29 2.27 40,768,219.15 72,929,964.02 32,161,744.87 35,018,314.73 Feb-18
Actual Cost
1.68 68,344,808.43 1.62 64,338,145.93 168,609,846.02 104,271,700.09
SV
100,265,037.59 Jun-18
CV
146,349,931.11 Jul-18
Project Duration
192,434,824.62 Aug-18
341,463,018.42 Oct-18
446,115,077.10 Nov-18
(Earned Value)
Allowable Cost
593,455,351.03 Dec-18
739,066,028.05 Jan-19
842,592,806.81 Feb-19
Value Management System in UAE Building Construction Sector
Synergy between People, Process and Technology for Post-Contract Stage Automated Earned
899,742,952.82 Mar-19
950,829,090.40 Apr-19
1,000,831,625.10 May-19
1,046,728,971.96 Jun-19
2020
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Period Ending : - Jun-18 Summary of Project Costs Variance Report by Categories Report No: - 12
1 Staff 37,002,612.66 10,360,731.55 11,896,188.31 28,550,008.76 18,189,277.21 2.76 16,653,820.45 2.40 25,106,424.35 37,002,612.66 37,002,612.66 0.00 1.00 0.00
2 Labour 58,205,732.59 16,297,605.13 18,215,533.42 25,598,215.62 9,300,610.49 1.57 7,382,682.20 1.41 39,990,199.18 58,205,732.59 58,205,732.59 0.00 1.00 0.00
3 Direct Material 63,464,576.85 17,770,081.52 22,979,475.07 28,324,835.43 10,554,753.92 1.59 5,345,360.36 1.23 43,485,101.78 66,464,576.85 67,964,576.85 1,500,000.00 1.02 (3,000,000.00)
6 Subcontractor 838,343,802.41 41,917,190.12 8,602,043.70 18,695,553.80 (23,221,636.32) 0.45 10,093,510.10 2.17 820,741,758.71 829,343,802.41 835,843,802.41 6,500,000.00 1.01 9,000,000.00
Total 1,046,728,971.96 100,265,037.59 104,271,700.09 168,609,846.02 68,344,808.43 1.68 64,338,145.93 1.62 945,217,702.50 1,049,489,402.59 1,050,228,971.96 739,569.37 1.00 (2,760,430.63)
Total Project Budget Staff Actual Cost Staff Estimate at Completion Staff
9% 10% 3% 3%
11%
Labour 14% Labour 6%
Labour
6%
18%
Subcontractor Subcontractor Subcontractor
27%
22%
79%
5% Indirect & Indirect & Indirect & Temporary
Temporary Items Temporary Items Items
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2020
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As result of above reports it divided in two parts as first 6 months and general key issues, as
can see from the report that first 6 months cost variance is huge and unrealistic due to Actual
Cost inaccuracy; so, below described the said both parts result analysis and key issues.
the unrealistic cost variance in the period and first three months is very huge cost
variance as the Cost Performance Index range between 20 to 30 which totally
unrealistic, can see that the Actual Cost for this period is less, as at the end of 3
months (September 2017) cumulative Actual Cost is AED 289,404.03 which
represent 0.028 % of the budget and at same period the Earned Value is AED
5,908,974.60 which represent 0.56 % of the budget though there is inaccuracy in
Earned Value which is general issue detailed below part.
It can notice from the Actual Cost report (Figure 25) the Actual Cost in the period is
very minor and sudden increase after this period, where the Planned Value (Figure 22)
and Earned (Figure 24) has consistent and realistic flow, the key issue of this is due to
the Actual Cost booking not take on time at the initial stages of the project.
The key issue is at the initial stage materials, formworks & Plant is usually deliver
from company central store without any purchase orders due the purpose
mobilizations, after this will be reconcile based on the delivery note and booked to
system. Also the initial stage materials such as Concrete, Reinforcement, Block
Works mostly delivery from Holding Group subsidiary supply organization; as such
internal organization will not consider purchase orders is condition president to
deliver the materials, so the purchase orders may not be in place upon delivery to
book cost, later it will issue purchase orders and process invoices.
Also, at the initial stage where the project organization chart may not be approved by
management to decide the staff and due the project offices not ready the staffs
working from their previous locations, so the official manpower transfer not in place,
so decide project organization and manpower transfer process with effect on previous
date the cost in the system will reconcile based on the attendance record.
In view of the above this unrealistic cost variance in the first six months period is due
to Actual Cost, it is noted that to tackle this issue is not viable and very difficult for
construction projects execution, as each project is unique and need new setups at each
projects; however, by enhancing the material requisition process the effect can be
reduced.
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It can notice from the report that the cost variance and schedule variance unrealistic for
example for June 2018 as follows;
The Planned Value and Actual Cost is almost same as only AED 4,006,662.50 which
represent 0.38 % against the budget which is acceptable variance as running project and this
minor range of variance inaccuracy is evident that progressing based on plan, but the variance
from the Earned Value is significant as mentioned above the Cost Variance (EV-AC) and
Schedule Variance (EV-PV) which represent 6.04 % and 6.53% against the budget
accordingly, which is unrealistic consider that project not assume any further huge savings
from the budget.
The Earned Value Analysis core is Earned Value (EV) as which is the factor decides the
Cost Variance and Schedule Variance, so, regardless how accurate the Planned Value and
Actual Cost the result will be depended to Earned Value accuracy. Though, it is noted that
there is issues related to Planned Value and Actual Cost.
Below table 3 described the key issues of Planned Value, Earned Value, Actual Cost, how
that issues impact the report result, cause and effect, and proposed corrective measures
proposed by Projects Control Dpt. and approved by Management to implement;
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Actual Cost
Timely book Low As mentioned in the above The benchmark and time frame for cost
actual cost and part 1, the cause is failure booking are strictly implemented, and
payment to book the actual cost on it include in the cost booking
certifications. time, this due to various personnel’s KPI (Key Performance
reasons, such as purchase Indictor) for during periodic evaluation.
order issuance delay,
posting delayed by internal Also, the technology based cost
dpt., supplier not submit on booking link to delivery under pilot
time, delay/ hold the study, as once the delivered to site and
subcontractor/supplier approved the material, the ERP system
payment process due to will book cost automatically, regardless
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The lessons learned from this changing the Project Cost Control process from Cost Value
Reconciliation to Earned Value Analysis based technique the higher management support and
motivation is key factor as change is always difficult, where the existing technique and process using
around 10 years, the other point is that the Earned Value Analysis has also limitations and
shortcoming, so is necessary the management to understand that to keep internal benchmark as
tolerance while review and consider the results.
In conclusion the Earned Value is core of the Earned Value Analysis and same time the generating the
Earned Value key critical issue, as due inaccuracy of actual progress reporting due to more people
interaction at various level, as well qualitative method using as process.
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4.2. Experts Interviews;
Introduction;
The experts interviews conducted with three experts in the same contracting organization heads
of different departments, this consider as good opportunity to make interview and get answers
from same organization different departments which provide very strong argument and
criticism. As all of them base are same in terms of organization aim, vision, and strategy, but
how they experience internally for Earned Value Management System (EVMS) use for
Contractor Projects Control technique.
The said organization using the Earned Value Management System (EVMS) as their Projects
Control technique, but still not matured enough to use as decision making tool.
The experts interviews conducted based on the six prepared questions and ask their other
opinions and area of concerns for Earned Value Management System (EVMS) use for
Contractor Projects Control technique. Also, during the interview asked some general
questions (i.e. Why, What, Where, etc.) in relation to core six questions for their
comprehensive response.
The interview conducted with two experts via virtual and one expert face to face interview,
each interview took almost 30 minutes to 1 hour; some are responded in detail but other
respond short answers, as detailed following section.
As mentioned above same six prepared questions and ask for each expert, so below table
compare their responses for easy compression, as well as the details of those experts
experience and educational qualifications.
1. People, Process and Technology based on their importance for the successful implementation and
effective use of EVMS?
The important factor is process. The important factor is always The important factor is
Because, if the process is vague people. It is not only in EVMS always people. If the
the project team can’t do anything any procedures and people who directly
and project team lose their innovations. As whom use the involved are not
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interest and demotivated, may process and technology should competent and not act in
they even frustrated vague be aware, competent in terms of due diligence with
process, as that disrupt their other technical and professional. understanding the
activities. process, all system and
outcome is wrong and
worthless.
2. What are the success factors for EVMS related for People?
The project team success is Firstly, the people involved in The communication
related to how good the the process shall be well aware between the project team
process and user friendly the importance on the Projects is very important factor. It
technology provided, also the Control and impact of the is practically evident that
proper training on the process wrong data and result will communication gap
and technology must provide. seriously affect the organization between the team is cause
in long-run. Also, it is strongly to recoding the actual
required higher management progress over than the
support and motivation to the actual at site. For example
team to act in due diligence and if the Planning Engineer
keep motivated. and Construction
The proper training shall Manager is not in good
provide time to time to keep the communication terms, the
enthusiastic to work in due Construction Manager
diligence and contribute their will report more progress
very best requirements for the in the monthly report,
projects control process. because the Construction
Manager will assume that
if that actual progress
behind the planned, the
Planning Engineer will
raise the questions,
though there may strong
reason for that difference
not due to the project
team, may due to design
change. But to avoid
more communication and
arguments Construction
Manager will report over
progress.
So, it is must to keep
good communication
synergy between the
team, including project
team and head office
teams.
Also, the proper training
and motivation is
important.
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the execution phase. The enhance at any point time to to implement and use the
process must be easily without more disturbance to EVMS in the construction
adoptable between the team, entire process. Also the process projects. Also the process
and can be change easily upon must be correlated with the must be integrated
any further enhancement. technology using, as well as between the department
Also, it is important that flexible to shift at any time to wise responsibilities and
process shall help with other other technology without more deliverables. And the
report data interaction to avoid modification and disturbance to process must be easily
repetitive works for project entire process. changeable due to any
teams. For example when the ERP innovations.
For practical example is the software change to one to other
that project need to submit the entire process of actual cost
progress dashboard to the booking are need to change, so
management for very month, always when initiate and
so the as much as possible data standardize the process must be
for the dashboard and EVMS done critical analysis on the
shall be linked each other to system in internally and
avoid the repetitive works, as externally, also should assume
repetitive works will and consider the provision for
demotivate and overloaded the further changes, enhancement,
team, which lead to reduce the and innovations, this will help
accuracy of data providing, so to change technology without
this can address by the process more disturbance to the existing
shall be reduce repetitive process.
works.
4. What are the success factors for EVMS related to Technology?
The technology must be user The technology should be user User friendly technology
friendly which can tell in short friendly and flexibility to is must and the
and which core. Also it is integrate with other technology. technology chose should
important for the management be complying with the
that ROI in any matter, as the In this era the technology contractual requirements.
management spent the money change to enhance efficiency For example the as per
in technology, so the result and outcome day to day, so it is the majority of the UAE
from that technology must important that chosen Contract it is required the
worthy. technology must be enhancing programme in the
based on the industry needs. Primavera software, so if
that can’t be changed
Also, it is very critical to have because Contractor
single software for EVMS internal requirements.
mainly the Planned Value But the
generation based on the budget, budgeting/estimation are
and easily adopt the design in different software, it is
changes, which is still seen not practically facing the
any software address this issue shortcoming for Planned
in practical manner and Value generation.
convince the industry to
confidence to implement.
5. What is the major challenge for efficient EVMS Implementation and use as Contractor Projects
Control Technique, in terms of Planned Value (PV), Earned Value (EV), and Actual Cost (AC)?
The Planned Value is always It has no argument that the The challenge is accuracy
the important factor which also Earned Value accuracy is of the Earned Value
can consider the forecast. The highly challenge in EVMS, can where the Earned Value
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unrealistic project duration will say that if the Earned Value Analysis core is Earned
generate the Planned Value accurate the result accuracy Value, so it is crucial that
which is not practicable and will be correct more than 90% inaccuracy of Earned
not achievable. shortcomings currently facing. Value will entirely
It is evident from the UAE This Earned Value inaccuracy damage the process and
construction industry the is due to actual data capturing result. As we can say that
project duration always and recoding. There is people if the Planned Value is
unrealistic, though the issue also the measurement unrealistic that only affect
Contractors are accept that issue as still using the the Secluded Variance /
stringent and unrealistic qualitative method. Index, but inaccuracy of
duration to win the tender to Earned Value will affect
have project. That one of the Also, there are challenges in the Cost Variance/Index
main reason of the majority of the Planned Value and Actual and Schedule
the project completion behind Cost, such as integration issue Variance/Index, that’s
the schedule, also the design of the programme and budget, mentioned it is Earned
changes its nightmare in the as inappropriate actual cost Value is Core.
industry now, we can say booking, but compare with
confidentially that no project Earned Value inaccuracy this In considering that in
without design change in the is minor, this issues challenges Construction industry the
post-contract stages. in the Planned Value and Contractor using the
Actual Cost can be tackled EVMS for mainly the cost
This both issues unrealistic somehow. aspect, as the Schedule
duration and vast design aspect is still using the
changes disturb the Planned CPM method in
Value, in addition to the Primavera, as it is
integration shortcomings of the contractual requirements
programme and budget. with Employer/Client as
well.
6. What is your opinion about integration of Building Information Modelling (BIM) and EVMS is best
solution for effective projects control process for Contractor?
In has been study by related It is very good and same time The BIM is was
team to detail how it will need critical study how the revolution now it’s going
works and what will be the practicality, in considering the beyond the BIM, such as
ROI, as it must there is Contractor prospective. Artificial Intelligence,
investment required. But, BIM Important is actual data Drone, etc., so it’s must
based effective technology capturing and import to the the construction projects
possible than no doubt in will system to get accurate Earned control use the BIM
be help industry lot. Value. If the BIM based effectively. But it is still
system can tackle this issue it need to prove the practical
will be noticeable innovation implantation and ROI.
in construction sector, it’s not
only help the EVMS, it will be
help entire project
documentation, which can be
used for EOT Claims as very
evident substantiation.
7. Please brief your other opinions and area of concerns for EVMS use as Contractor Projects Control
Technique.
No further comments, but last There is limitation and The comment to put
it is needed the EVMS experts shortcomings in the Earned forward that the Schedule
and researches to make Value Analysis, so the industry aspect the EVMS is not
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confidant that EVMS suitable and higher management to realistic for construction
for construction industry. understand and accept first, projects, though there is
and create the benchmark extension Earned
considering those limitations Schedule Analysis, which
and shortcomings to review the need to reviewed the
EVMS results. practicality and accuracy.
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4.3. Questionnaire Survey
Introduction;
As mentioned above the questionnaire survey was not planned for the research, but due to the limited
number of expert interview, the questionnaire survey conducted. The questionnaire survey sends 62
selected professionals and 44 professionals are participated. Since the send to selected professionals
the reliability of the participation and response are more accurate. So, it considers all the responds for
analysis described below section.
Analysis of Result;
This section purpose to obtain the background information about the participants such as experience,
their industry, professional certifications, etc. as detailed below in the 1 to 7 questions. It is necessary
to consider that participants such information to assure the survey reliability and accuracy.
This question aim to recognize the type of organization participants working, as summarized below
chart and table the 61.36% Main Contractor, 9.09% Subcontractor, 9.09% Cost Consultant, 9.09%
Project Management Consultant, 2.27% Design Consultant, 2.27% Client, as well as 6.82% others
those are technical experts working with ERP software industry. Though research is related to
contracting organization, but the other professionals also can contribute their experience, as almost all
the professionals in construction industry start their career with contracting organizations.
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Question 2: How many years of experience do you have in the UAE construction
industry?
This question aim to recognize the year of professional experience of the participants, as summarized
below chart and table;
This question aim to recognize the role and job title of the participants, as summarized below chart
and table, in the participants heading various roles as higher management to site based commercial
team, as well as some ERP software technical expert of also part. The majority as 52.27 % is Quantity
Surveyor/Cost Controller, which will give good respond as those who directly involved and working
the Earned Value Management System in the projects.
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This question aim to obtain the area of expertise of the participants in the construction industry, as
summarized below chart and table, in the total participants 77.27% working in the building projects,
which is give good respond as the research is related to building section. However, the 18.18% is
expertise in the infrastructure projects, as well as some ERP software technical expert of also part.
The survey includes the Oil& Gas, and Precast/Off Site Construction but no participants from such
expertise.
This question aim to obtain the participants has member/associate of any professional body, below
chart describe the result.
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Question 6: Which method using your organization for projects control process?
This question aim to obtain the important answer of the research, as the acceptance and usage of
the Earned Value Management System in the UAE construction industry, as per the survey
the Earned Value Management System is using for projects control is 40.48% only, where the
Cost Value Reconciliation is 59.52%, it agree with research (MORAD; EL-SAYEGH)
described in the above literature review (Chapter 2/2.1). Below chart and table describe the
result.
Question 7: Did your organization using software for projects control process?
This question aim to obtain the level of software usage for projects control process, as result from
below survey that 72.73 % participant respond that their organization using the software for projects
control process. It is important and positive for that UAE construction organization are taking steps to
seriously consider projects control technology adoption. This is positive criticism to article
(SCHOBER; HOFF; SOLD, 2016) as described in the above literature review (Chapter 2/2.5.3).
Below chart and table describe the result.
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This section address to obtain the basic information of the Earned Value Management System
(EVMS), such as the EVMS using for decision making for organization, the reliability and accuracy
of EVMS, this include the 8 questions (Question 8 to 15) as follows.
This question aim to obtain the level that EVMS usage in participant’s organization, this provides the
result how the UAE construction industry adoption of the EVMS for their projects control technique.
Based on the survey result as discarded below chart and table, the 30.00% responded that EVMS is
using their organization always, and 25.00% responded that EVMS is using their organization usually,
also 25.00 % is sometimes and 12.50% rarely, the important to note that still there is 7.50% response
shows that their never using the EVMS.
This survey result contradict with research (MORAD; EL-SAYEGH) described in the above
literature review (Chapter 2/2.1), refer below comparison of both survey result ranking wise,
as that survey shows that 47% -Always, 38%-Often, 15% Sometimes, and 0% is Rarely and
Never. Though both results contradict still it is evident that still that UAE construction
industry EVMS adoption for projects control is not using matured level, which agreed in the
both surveys, as still always use is less than 50.00%.
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Ranking (MORAD; EL-SAYEGH) Result of this Research
1 Always (47%) Always (30.00%)
2 Usually/Often (38%) Usually/Often (25.00%)
Sometimes (25.00%)
3 Sometimes (15%) Rarely (12.5%)
4 Never (7.5%)
5
No Rank Rarely (0%)
Never (0%)
Question 9: Level of Earned Value Management System (EVMS) using for decision
making in your organization?
This question aim to obtain the level that EVMS usage in participant’s organization for decision
making, this provides the result how the UAE construction industry get befitted from the EVMS, as it
is no use if the organization not befitted from the projects control process, as the result not using for
decision making, it is nothing more than waste of time and resource, as not ROI.
Based on the survey result as discarded below chart and table, the 35.00% responded that EVMS is
using their organization for decision making sometimes, and 30.00% responded that EVMS is using
their organization for decision making always, also 20.00 % is usually and 10.00% rarely, and the
important to note that still there is 5.00% response shows that their never using the EVMS result for
decision making.
This survey result contradict with research (MORAD; EL-SAYEGH) described in the above
literature review (Chapter 2/2.1), refer below comparison of both survey result ranking wise,
as that survey shows that 29% -Always, 35%-Often, 32% Sometimes, 3% Rarely and 0%
Never. Though both results contradict still it is evident that still that UAE construction
industry EVMS not benefited from the EVMS.
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This question aim to obtain the benefit of the EVMS in terms of that EVMS result provides early
warning signals. The result noted that 50 % agree on that EVMS provide early warning signal, and
22.50 % strongly agree, which is positive that participants agree on that EVMS is tool provide
warning signal to take necessary mitigation / recovery actions. The important point is that none of the
responds disagree with that EVMS is providing early warning signals of performance problems.
Below chart and table shows the complete result and ranking.
This question aim to obtain the benefit of the EVMS in terms of that single tool for reliable data, the
result noted that 42.50 % agree on that EVMS will be single tool provide reliable data, and 27.50 %
somewhat agree, where 17.50% strongly agree, it is prove the case study and expert interview
outcome that EVMS is provide the reliable data subject the accuracy of the input in terms of Planned
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Value, Earned Value, and Actual Cost. The important point is that none of the responds strongly
disagree with that EVMS data reliability.
Below chart and table shows the complete result and ranking.
This question aim to know the ranking of that benefit of the EVMS in terms of project cost objectives,
the result noted that 55.00 % agree on that EVMS will be benefit for project cost objectives , and
17.50 % somewhat agree, where 17.50% also strongly agree. The important point is that none of the
responds disagree and strongly disagree with that EVMS will not benefit for project cost objective.
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Category Nos. Percentages Rank
Strongly Agree 7 17.50% 2
Agree 22 55.00% 1
Somewhat Agree 7 17.50% 2
Neither Agree nor Disagree 3 7.50% 3
Somewhat Disagree 1 2.50% 4
Disagree 0 0.00% No Rank
Strongly Disagree 0 0.00% No Rank
This question aim to know the ranking of that benefit of the EVMS in terms of project schedule
objectives, the result noted that 45.00 % agree on that EVMS will be benefit for project schedule
objectives , and 27.50 % somewhat agree, where 15.00 % strongly agree. The important point is that
different from the cost objective that participants are Somewhat Disagree, Disagree, and Strongly
Disagree disagrees with that EVMS benefit the project schedule objectives, which is agreeing with the
expert interview (Planning Manager) opinion, and (VANHOUCKE; VANDEVOORDE, 2008) and
(VANHOUCKE; VANDEVOORDE, 2008) that reason to introduce the extension to EarnedValue
Analysis technique with Earned Schedule.
Below chart and table shows the complete result and ranking.
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Question 14: Did your organization using the Earned Schedule (ES) as extension to
Earned Value Analysis, which provide accurate time factor.
This question aim to know the level usage of the Earned Schedule (ES) as extension to Earned Value
Analysis, the 60 % are responded that Earned Schedule not using their organization, and 40 % is using
the Earned Schedule (ES) as part of projects control process. Below chart and table shows the
complete result.
Question 15: Did your organization have standard manual, procedure, and bench-
marking for Earned Value Management System (EVMS) implementation and use as
project control technique.
This question aim to know the level standardization and benchmarking of the EVMS system in the
participants organization by procedures, the 57.50 % are responded that their organization has
standard manual, procedure, and bench-marking for Earned Value Management System
(EVMS) implementation and use, and 42.5 % is responded that their organization has no standard
manual, procedure, and bench-marking for Earned Value Management System (EVMS)
implementation and use.
Though, the result give positive as higher percentage has proper system for Earned Value
Management System (EVMS) implementation and use, but variance with those has no proper
system is very less 15 %, it indicate that UAE construction industry still not matured enough
for Earned Value Management System (EVMS) effectively get benefited through effect and
efficient process and standardization. Below chart and table shows the complete result.
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This section address to obtain the information of the core of this research as People, Process
and Technology Factor in Earned Value Management System (EVMS), this part only
participates who familiar and practicing EVMS, as the survey allowed option to conclude the
with survey section A & B for those not familiar and practicing EVMS to get reliable and
adequate result. Accordingly, this part is participated 31 professionals those familiar and
practicing EVMS.
Total 6 questions was issued for survey in this section, but in the report only consider general
3 (Question 16 to 18) for this part, as mentioned above this section questions are designed for
expert interview, due to short number of expert interviews done, same issued for survey with
condition that only need to participate who familiar and practicing EVMS.
Question 16: Please rank People, Process and Technology based on their importance for
the successful implementation and effective use of Earned Value Management System
(EVMS).
This is the very important and core question of this research aim, as the ranking of the people,
process, and technology based on their importance for the successful implementation and
effective use of Earned Value Management System (EVMS).
The summary of the below result the 45.16% respond that people rank first, 29.03% respond
that process rank first, and 25.81% respond that technology rank first.
The result agree with research (MORAD; EL-SAYEGH) described in the above literature
review (Chapter 2/2.1) and case study, as well as the response of the two of expert
interviewer (Cost Control Manager & Planning Engineer) out of three.
Below chart and table shows the complete result.
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Question 17: What is the major challenge for efficient Earned Value Management
System (EVMS)?
This question aim to know important question that industry always looking, as what is the
major challenge for efficient Earned Value Management System (EVMS), the result shows
that 35.48% respond that inaccuracy of Earned Value (EV) due to actual data/progress
reporting is the major challenge, also 35.48% respond that inaccuracy of Planned Value (PV)
due to baseline programme is the major challenge, and 29.03% respond that inaccuracy of
Actual Cost (AC) due to timely not posting actual cost is major challenge. This result
contradict with the case study and expert interview, and (AL-HAJJ; SAYERS, 2014) that Earned
Value accuracy is important factor, though survey result shows that accuracy of Planned Value and
Earned due to generation same, but considering majority of the previous researches and case study
and above expert interviews the major challenge for efficient Earned Value Management
System (EVMS) is inaccuracy of Earned Value (EV) due to actual data/progress reporting.
Below chart and table shows the complete result.
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Category Nos. Percentages
Inaccuracy of Earned Value (EV) due to actual 11 35.48%
data/progress reporting
Inaccuracy of Actual Cost (AC) due to timely not posting 11 35.48%
actual cost
Inaccuracy of Planned Value (PV) due to baseline 9 29.03%
programme
Question 18: Please rank that integration of Building Information Modelling (BIM) and
Earned Value Management System (EVMS) is best solution for effective projects
control process.
The question for future and proposed solution model described in the Chapter 5, as aim to
know the Building Information Modelling (BIM) and Earned Value Management System
(EVMS) integration how will help and benefit the effective projects control process. The
38.71% are strongly agreed that Building Information Modelling (BIM) and Earned Value
Management System (EVMS) integration will be best solution for projects control process.
Below chart and table shows the complete result.
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5. CHAPTER 5: CONLUSION, RECOMMENDATION AND LIMITATIONS
5.1. Conclusion;
This research is conclude with positive messages to the UAE construction industry that though the
Earned Value Management System (EVMS) is still not matured enough using construction
for post-contract stage projects control process as result of above questionnaire survey
Section B- question # 6 the Earned Value Management System (EVMS) is using in the less
than 50 % organization, remaining still using Cost Value Reconciliation (CVR) similar
research of (MORAD; EL-SAYEGH), but the positive message is the industry agreeing that
Earned Value Management System (EVMS) is viable technique to achieve the early warning
signals which help to take timely mitigation/recovery actions, providing the reliable data, as
well as achieve the cost objective (questionnaire survey Section B- question # 10 to 12) and
expert interviews all three expert are agree on that.
The hindering and holding back the industry from the implement and use Earned Value
Management System (EVMS) for project control process is simple and powerful thought that
who will lead and support, it is evident from this research results (questionnaire survey
Section C- question # 16) and expert interviews, and the research of (MORAD; EL-
SAYEGH) surmised Table 2 in Chapter 2, the People is important and People have more
involvement, than only Process and Technology accordingly.
This research described in the five chapters and assume that it is address the topic in detail
and critically analysis the research topic, which will help the construction industry for noticed
willingness to implement and use the Earned Value Management System (EVMS) for post-
contract stage projects control process, by considering the Synergy Between People, Process
and Technology for Effective Usage of Post-Contract Stage Automated Earned Value
Management System in UAE Building Construction Sector.
As per of the conclusion below proposed model as Building Information Modelling (BIM)
integration with Earned Value Management System (EVMS) at the post-contract stage
projects process, motivated from this research which initial study stage, which put forward
for industry expert to thought.
The core of the proposed model reduce the People interaction while strongly agree and
consider that People is masters and first place in any innovations and process. Which will
help to improve the accuracy of the actual progress data actuation and progress report, it will
eventually improve the accuracy of the Earned Value and Earned Value Management System
(EVMS) accordingly.
In first stage the BIM model and develop progress to integrated with that as projects control
baseline file which uploaded in the central system, this will produce the Planned Value, the
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elements of the BIM model shall be designed and divided to corresponding to budget bill
items, and keep inactive/hide from the data.
In second stage the projects control personnel’s who familiar and experience in the BIM
modelling will visit the sites periodically and unhide the completed elements based on their
acceptance and confirm with project QA/QC department, this will calculate the activated
elements actual progress.
In stage three this progress will integrate with Earned Value Management System (EVMS)
software though the automation to analysis and produce the Earned Value Analysis.
As mentioned above the proposed model is initial study, but the confidant that model will
applicable in practical, if it success which will be viable innovation for Earned Value
Management System (EVMS) to tackle the key shortcoming and limitation of the inaccuracy
Earned Value.
5.2. Recommendations;
The main recommendation pass to the industry as understand from this process, research,
interviews, professionals survey, and previous related papers review that change are agreeing
all, but leading the change is still pitfall, which need to address the construction industry
expert look forward, the below Figure 29 is to realize that recommendation put forward to
construction industry for critical thinking.
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