Application of earned value in the Korean construction industry - A case study

Abstract

Earned Value (EV) is a project control technique used in many countries which provides a quantitative measure for integrating on schedule and cost information. It also evaluates work progress in order to identify potential delay and cost overruns. South Korea had not used this concept until 2000, when the Korean government legislated that EV should be used in construction projects of more than 50 million dollars. In order to effectively implement EV in the Korean context, several reforms must be made regarding its unique conditions, such as the cost accounting system. This paper seeks to integrate cost as related to bill of quantity and schedule in a manner that is suitable for application in Korea. An example application of the proposed EV model to two actual separate projects is provided.