The implementation of earned value management (EVM) to control project performance in Malaysian Construction Industry

Abstract

Earned Value Management is not a new technique in the construction industry and other sectors. Almost seven (7) decade has been widely used in the United Kingdom, Australia and United States. However, in Malaysian construction industry is considered as a new technique. It was introduced in year 1986, even it not commonly used or known by the practitioners. It has been found to be able to reduce the cost of the construction project at least 10 to 30 percent. A few project such as KLIA 2, Institut Aminuddin Baki, Larut Tunnel, educational Building, highway and others. that project has been considered as successful in implemented VM cause project cost reduced. The initiative from government with integrated the VM in Economic Planning Unit (EPU) 2009 and the manual has been released on 2011. The design of this study is survey. this study aimed to attain an objective which to identify the barriers in implementing EVM in controlling project performance in the Malaysian construction industry and to determine critical success factors for implementing EVM in controlling project performance in the Malaysian construction industry. The analysis shows that the types of barriers listed such as lack of proper training and experience of project manager, lack of knowledge and disclosure, cultural resistance/people resistance to implement EVM as control tool and others be the barrier in implementing EVM in construction industry. Meanwhile, the construction practitioners agreed the critical success factor that contribute toward the successful in implementing EVM. this study expected to improve the Earned Value Management used in Malaysian construction industry and give the benefit to the parties who use EVM in the construction sector in future.