Using modified earned value for cost control in construction projects

Abstract

The research aims to predict the future costs of project completion stages through basic metrics and indicators by using modified earned value. The project was divided into five stages with improved cost decision. This is an effective way to improve investment projects according to the earned value technique.

The earned value technique is mainly to control costs, make better decision and improve measures taken, after studying the modified method and indicating the cost difference between it and the actual cost. Our research sample includes the Iraq gate residential project, which includes several residential complexes still under construction belonging to the Baghdad Investment Authority.

The most important outcome of this research is the advantage of the modified method in terms of completion of the project at the scheduled time and the lowest possible costs after comparing the results of the prediction and the actual cost, depending on the slope lowest cost of the critical activities for each stage of the project. The results proved that the final cost in the modified method is lower than the predicted cost and less than the actual cost. The results also showed the possibility of overcoming the delay, which was 2.7% in the first stage. We succeeded in completing the project at the scheduled time and the cost was less than the actual cost by (26506.8) dollars.