IMPROVING PERFORMANCE OF CONSTRUCTION PROJECTS BY INTEGARATING RISK INTO EARNED VALUE MANAGEMENT: ALITURATURE REVIEW

Abstract

The actual cost and time of the construction projects are different from the planned. Cost and time overruns are critical issues. Therefore, these overruns highlight the importance of the monitor and control phase for the project's success, So the project needs to monitor and control project elements as time, cost, and scope, in addition to risks, where construction projects face more risks. Earned value management (EVM) is a technique for evaluating project performance, used for early tracking to indicate that the project on planned time and estimated cost or not. Risk is considered part of the EVM process. Earned Value Management and risk management (RM) are two popular techniques used to monitor and control project performance. Therefore, the main objective of this paper to improve the performance of construction projects by integrating risk into Earned Value Management. Achieving this aim shall help the project managers to take corrective actions. In order to achieve the objective of this paper, present a literature review, where several chosen literature sources published during the last decade were analyzed and divided into five main categories: EVM, RM, Integration between EVM and Risk, Risk Contingency Reserve (CR), Schedule Reserve (SR), Software. The findings of this paper identified the value-added from applying integration and the guidelines for this process application. Therefore, it recommends integrating Earned Value Management into Risk from a cost and time perspective with the use of accurate software to improve construction project performance.