PV — Planned Value
Budgeted value of work scheduled by the data date. PV depends on an approved time-phased baseline and a consistent reporting cut-off.
Earned value management · EPC · Construction
Earned Value Management software that connects the indices to the evidence.
ORQIV connects PV, EV, AC, SPI, CPI, EAC, ETC, VAC and TCPI with schedule status, physical progress, quantities, cost cut-offs, procurement, commercial change and field evidence. The objective is not more KPI cards; it is a performance picture that can be traced back to how the project was actually planned, earned and spent.
Core EVM metrics and what they actually depend on
The arithmetic is straightforward. The control challenge is making sure the baseline, status date, progress method and actual-cost period are comparable.
EV — Earned Value
Budgeted value of work actually accomplished. EV is only credible when progress rules, quantities, milestones or physical-percent evidence are controlled.
AC — Actual Cost
Cost incurred for the work performed. The accounting cut-off and accrual treatment should align with the same reporting period used for PV and EV.
SPI — Schedule Performance Index
SPI = EV ÷ PV. It is a performance signal against the selected baseline, not a substitute for CPM forecast dates or critical-path analysis.
CPI — Cost Performance Index
CPI = EV ÷ AC. Values below 1.00 indicate that the project is earning less budgeted value than the cost being incurred.
EAC / ETC / VAC
Forecast metrics translate current performance and remaining work into an expected final cost. The selected formula must state its assumptions rather than hide them.
TCPI
TCPI tests the cost efficiency required on the remaining work to achieve a target such as BAC or an approved EAC. It is useful for testing whether the target is realistic.
How ORQIV approaches construction EVM
01
Start with a controlled performance baseline
EVM is not created by a KPI card. The budget, WBS/CBS mapping, time-phased plan, progress method and data date have to be controlled before the indices can be trusted.
02
Reconcile schedule, physical progress and cost cut-offs
A strong period close confirms that status dates, approved progress, quantities, commitments, accruals and actual costs refer to the same reporting window. Misaligned cut-offs can make CPI and SPI look precise while the underlying comparison is inconsistent.
03
Use the right EAC assumption
EAC = BAC ÷ CPI is one common forecast when current cost efficiency is assumed to continue. Other methods may assume remaining work performs to plan or that both cost and schedule efficiency influence the remainder. ORQIV keeps the formula basis visible so management can understand the assumption behind the number.
04
Connect variance to the work that caused it
A cost or schedule variance becomes actionable when it can be traced to WBS, control account, work package, quantity, procurement package, change, work front or other source evidence rather than remaining an unexplained red indicator.
05
Keep change control separate from performance rewriting
Approved scope and budget changes should be governed. EVM should not be improved by silently rewriting the baseline to erase historical variance. Baseline revisions, transfers and approved changes need a traceable chronology.
06
Read EVM with CPM and field evidence
SPI is an earned-value indicator and should be read beside critical-path movement, float, lookahead readiness, procurement risk and field production. Cost and schedule performance become more useful when the management team can see why the indices moved.
EVM should explain a decision, not only report a variance.
When CPI, SPI or EAC moves, the useful question is what changed in the work. ORQIV is designed to connect performance signals with planning, quantities, procurement, commercial records and field execution so managers can investigate the driver and decide what action is needed.
For methodology reference, PMI publishes the standard relationships among PV, EV, AC, SPI, CPI, EAC and TCPI. ORQIV applies these concepts as project-control measures and does not present a metric as a substitute for project-specific professional judgment.
PMI — Earned Value Management reference ↗Earned Value Management FAQ
What is earned value management in construction?
Earned Value Management combines planned value, earned value and actual cost to measure cost and schedule performance against a controlled baseline. In construction and EPC, the method is strongest when it is connected to schedule status, quantities, physical progress, cost records and change control.
What do SPI and CPI mean?
SPI is EV divided by PV and shows earned progress relative to planned value. CPI is EV divided by AC and shows cost efficiency. A value of 1.00 is on the selected baseline basis; values below 1.00 indicate underperformance that should be investigated.
Which EAC formula should a project use?
There is no single EAC formula that fits every project condition. The formula should match the forecasting assumption and project policy, and the assumption should be visible. For example, BAC divided by CPI assumes current cost efficiency continues.
Does SPI replace Primavera P6 schedule forecasting?
No. SPI is a value-based schedule performance indicator. CPM logic, critical and near-critical paths, float, remaining durations and forecast dates remain necessary for schedule forecasting.
Can ORQIV connect EVM with procurement, BOQ and claims evidence?
Orqiv PCS is designed to keep cost and earned-value performance in the same governed project context as planning, procurement, quantities, commercial change, field execution and claims-support evidence.