Abstract:
Successful accomplishment of a project requires effective management of its
performance. The performance of the most construction projects is tracked utilizing
planned cost vs. actual cost measures only. Earned Value Management (EVM) technique
came into existence as an effective performance measurement and a feedback tool for
managing projects by emphasizing more on the Earned Value (EV) of projects.
Regardless of the immense benefits of EVM, there are significant deficiencies in the
process of implementation of the EVM technique in Sri Lanka. Therefore, this study aims
to develop a conceptual framework for effective implementation of EVM in the Sri
Lankan construction industry with specific reference to the Project Management
Institute’s (PMI’s) standard for EVM. A qualitative research approach was used to
accomplish the aim of the study. The empirical findings were analyzed using the manual
content analysis technique to determine the degree of implementation of the PMI’s
standard for EVM in Sri Lanka. The deficiency of professionals and inadequate
conceptual knowledge were identified as the most critical barriers associated with the
implementation process of the EVM technique. Allocating a separate team to execute the
EVM technique, arranging short courses on EVM, developing a standard master format
for project performance measurement are the measures that this study recommends
promoting the adoption of the EVM technique in the Sri Lankan construction industry.
