Improving predictions of the Estimate at Completion using the classic Earned Value input

The article investigates the author’s method of estimating the final cost of a construction investment. A list of proposed methods of calculating the value of the planned final cost of the EAC investment available in the world literature was used. The modification consisted in the first place in the...

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Main Author: Anna Starczyk-Kołbyk
Format: Article
Language:English
Published: Polish Academy of Sciences 2024-12-01
Series:Archives of Civil Engineering
Subjects:
Online Access:https://journals.pan.pl/Content/133454/17_1k.pdf
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author Anna Starczyk-Kołbyk
author_facet Anna Starczyk-Kołbyk
author_sort Anna Starczyk-Kołbyk
collection DOAJ
description The article investigates the author’s method of estimating the final cost of a construction investment. A list of proposed methods of calculating the value of the planned final cost of the EAC investment available in the world literature was used. The modification consisted in the first place in the verification and elimination of formulas that do not match the use in construction projects and the combination of formulas resulting in the same result. The study was aimed at enabling the right choice of the method of estimating the final cost of construction investments and determining the accuracy of this estimate. It should be emphasized that the analyzed investments were annexed many times during their implementation. On the basis of the obtained results of research carried out on real construction investments, it was found that 3 methods best predict the final cost of the investment. Finally, improvements were introduced, which were analyzed, the final effect of the article is a proposal of an original, universal formula, which in each of the analyzed construction investments, regardless of the trends, deviations from the cost at the time of the inspection, forecasts the most accurate result, consistent with reality. The conducted research gives the possibility of more effective financial management of a construction investment using the corrected EAC formula in EVM method.
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spelling doaj-art-04fc470ae23d4761b363f309a57e2f612025-08-20T02:31:37ZengPolish Academy of SciencesArchives of Civil Engineering1230-29452024-12-01vol. 70No 4https://doi.org/10.24425/ace.2024.151892Improving predictions of the Estimate at Completion using the classic Earned Value inputAnna Starczyk-Kołbyk0https://orcid.org/0000-0002-5448-7366Military University of Technology, Faculty of Civil Engineering and Geodesy, ul. gen. Sylwestra Kaliskiego 2, 00–908 Warsaw, PolandThe article investigates the author’s method of estimating the final cost of a construction investment. A list of proposed methods of calculating the value of the planned final cost of the EAC investment available in the world literature was used. The modification consisted in the first place in the verification and elimination of formulas that do not match the use in construction projects and the combination of formulas resulting in the same result. The study was aimed at enabling the right choice of the method of estimating the final cost of construction investments and determining the accuracy of this estimate. It should be emphasized that the analyzed investments were annexed many times during their implementation. On the basis of the obtained results of research carried out on real construction investments, it was found that 3 methods best predict the final cost of the investment. Finally, improvements were introduced, which were analyzed, the final effect of the article is a proposal of an original, universal formula, which in each of the analyzed construction investments, regardless of the trends, deviations from the cost at the time of the inspection, forecasts the most accurate result, consistent with reality. The conducted research gives the possibility of more effective financial management of a construction investment using the corrected EAC formula in EVM method.https://journals.pan.pl/Content/133454/17_1k.pdfinvestment managementfinal cost forecastbuilding disturbancesevm methodeac formula
spellingShingle Anna Starczyk-Kołbyk
Improving predictions of the Estimate at Completion using the classic Earned Value input
Archives of Civil Engineering
investment management
final cost forecast
building disturbances
evm method
eac formula
title Improving predictions of the Estimate at Completion using the classic Earned Value input
title_full Improving predictions of the Estimate at Completion using the classic Earned Value input
title_fullStr Improving predictions of the Estimate at Completion using the classic Earned Value input
title_full_unstemmed Improving predictions of the Estimate at Completion using the classic Earned Value input
title_short Improving predictions of the Estimate at Completion using the classic Earned Value input
title_sort improving predictions of the estimate at completion using the classic earned value input
topic investment management
final cost forecast
building disturbances
evm method
eac formula
url https://journals.pan.pl/Content/133454/17_1k.pdf
work_keys_str_mv AT annastarczykkołbyk improvingpredictionsoftheestimateatcompletionusingtheclassicearnedvalueinput