ENHANCING COST EFFICIENCY IN CONSTRUCTION USING EARNED VALUE MANAGEMENT

Cost overruns in projects are persistently observed in all types of project and regardless of location. Which results, delay in project and affect the progress, it might affect the quality of project. Cost overruns occur in construction due to various reasons and one of the major problems occurs due to handling of similar estimation method. This paper forms a theorem to enhance cost efficiency in construction; in which inside view and outside view estimation approach is integrated to form a reliable estimation, then it is effectively tracking with earned value metrics such as planned, earned and actual value to reduce occurrence of cost variance in project. A survey is conducted from construction project manager, supervisor, and engineers of various locations to determine the occurrence and percentage increase of estimated cost from original at final stage. A case study is done on construction of pile foundation of highway River bridge, in which this theorem is applied to enhance cost efficiency, finally it shows how much it enhance cost efficiency without affecting quality of project and determines usage of this theorem and its applicability.