Research On Improved Earned Value Method From Contractors’ Perspective

Today the engineering and construction industry is still in rapid development. Contractor plays a pivotal role in project implementation. Cost management is one of the three sectors in project management, but also focused on by project manager who need to think and control it. Contractor’s cost control has become the core of measure of project success and enterprise efficiency. For engineering and construction projects and assessment evaluations related businesses, it plays a vital role. Earned Value Method as a traditional cost analysis method, still has practical value in helping analyze the cost, schedule status. However, when used by contractors, Earned Value Method is not targeted. Faced with the current situation, the paper makes the following main tasks:1. The traditional Earned Value method is improved. The paper deep analyzes earned value method and found that the unreasonable. From contractor’s point of view, it introduces o new indicators "PVc" and "EVc", to distinguish between some indicators previous, resulting in a new analysis of indicators. Under the assumption that contractor plans project profitably, it has a new induction and summary of the analysis result, and describes the application of this method for dynamic analysis.2. The paper builds GA-SVM estimation model to determine the value of PVc. It introduces the Support Vector Machine (SVM) estimation model, summarizes the methodological characteristics and problems to be solved. Genetic algorithm is briefly described to build the GA-SVM estimation model. Paper illustrates the flow that uses the model to estimate and the important content of the design. It summarizes the process that contractors manage project cost based on the GA-SVM estimation model and improved Earned Value method. Meanwhile, improved earned value method for each time period analysis has been described.3. N project as an example, collecting data of similar projects in the region, uses GA-SVM model to make the regression analysis and forecast N’s value of PVc. N’s project cost is analyzed with improved Earned Value method in contractor’s point. By comparing different time points’monitoring data, evaluates management effectiveness. Compared to traditional methods, it summarizes the advantages of the improved method.By improving the traditional earned value, it can be fully applied by contractors, to better reflect projects’complex situation on progress and costs. At the same time, the application of scientific estimation method and computer technology can change the status of inefficient project management. For the implementation of the project management, this paper has a certain practical significance.