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EVM Problem: Project Scope Change
Davida Trumbo, CEO, United States
One of the problems I have encountered with earned value is project scope change or more specifically creep.
It is difficult to account for the completion of work when the parameters are not aligned with contractual obligations.
Sometimes the issue is also complicated by the customer's lack of project management knowledge.
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EVM and Variable BudgetsPaul D Giammalvo, Professor and Consultant, Indonesia Davida, pick up a copy of Aace's 'Skills & knowledge of cost engineering: A project of the Education Board, AACE', and turn to chapter 15, "Earned value using variable budgets" by Dr. J. Orczyk, PE, CCE. He explains how to address the problem. |
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Contract Mod TimeMajor Reen, Project Manager, United States Davida, while I don’t claim to have all of the answers, most of my customers will ask and ask as long as you give and give.
- If the "creep" you refer to is out of scope to the current contract, you need a contract modification.
- If the creep you are referring to is "gold plating" the current contract at the customers request, you may have to push back.
- World class engineers (that I have been blessed to work with over the years) tend to love to make their widgets very shining and have no concept of cost. The customer may not even be asking for the shiny widget. |
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