Construction Earned Value Management (EVM)

Calculating Planned Value (PV), Earned Value (EV), Actual Cost (AC), Cost Performance Index (CPI), and Schedule Performance Index (SPI).

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Construction Earned Value Management (EVM) within SmartERP.

Calculating Planned Value (PV), Earned Value (EV), Actual Cost (AC), Cost Performance Index (CPI), and Schedule Performance Index (SPI).

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2. Prerequisites & Security Access Groups#

Required Modules: project, smarterp_project_governance, hr_timesheet
Security Groups:
- Project User (Technical ID: project.group_project_user)
- Project Administrator (Technical ID: project.group_project_manager)
- Timesheet Approver (Technical ID: hr_timesheet.group_hr_timesheet_approver)
Master Data Dependencies: Project master records, milestone stages, work breakdown structures (WBS), bill of quantities (BoQ), and employee billing cost rates.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

Log into your SmartERP instance at https://smarterp.et/odoo.
Open the main App Switcher (grid icon in the top-left corner).
Select the Projects app icon.
From the top navigation bar, open Projects → Dashboard → My Tasks / All Projects; Timesheets → Timesheets.

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Step 2: Creating and Parameterizing Records#

Click the New button in the top-left control panel.
Complete the mandatory fields in the record form:
- Project / Task Name (Mandatory): Descriptive title of work package or milestone deliverable
- Assigned Project Team (Mandatory): Lead project manager and operational contributors
- Planned Dates (Mandatory): Scheduled commencement and milestone completion deadlines
- Customer / Stakeholder (Mandatory): Client partner linked to project contract and invoicing terms
Configure optional operational parameters and localized tags as required:
- Analytic Cost Center (Optional): Dedicated project accounting account for expenditure tracking
- Bill of Quantities (BoQ) Line (Optional): Specific contractual BoQ item code for construction tracking
- Milestone Billing Weight (Optional): Percentage of contract value tied to milestone acceptance
Click the Save icon in the control bar to commit the record.

{screenshot:construction-earned-value-management-evm-record-creation-form}

Step 3: Validating and Processing Transactions#

State Transitions: Execute operational state progression (New / Scoping → In Progress → Review / Testing → Completed → Archived).
Ledger & System Impact: Timesheet confirmations and project purchases post direct expenditures to the project analytic account, enabling real-time cost vs. revenue margin analysis.
Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:construction-earned-value-management-evm-transaction-processing-state}

Principles of Earned Value Management (EVM)#

Earned Value Management integrates project scope, schedule, and cost performance into a unified set of mathematical indices.

Core EVM Formulas#

Metric	Calculation Formula	Interpretation
Planned Value (PV)	$\text{Planned \% Complete} \times \text{BAC}$	Budgeted cost of work scheduled to date
Earned Value (EV)	$\text{Actual \% Complete} \times \text{BAC}$	Budgeted cost of work physically performed
Actual Cost (AC)	Total real expenditure incurred	Real accounting costs from invoices, payroll, SIVs
Cost Variance (CV)	$\text{EV} - \text{AC}$	Positive = Under Budget, Negative = Over Budget
Schedule Variance (SV)	$\text{EV} - \text{PV}$	Positive = Ahead of Schedule, Negative = Behind
Cost Performance Index (CPI)	$\frac{\text{EV}}{\text{AC}}$	Benchmark: $>1.0$ is cost efficient
Schedule Performance Index (SPI)	$\frac{\text{EV}}{\text{PV}}$	Benchmark: $>1.0$ is schedule efficient

Viewing the EVM Project Cockpit#

Navigate to Projects > Construction > EVM Dashboard:

Displays real-time CPI and SPI gauges per project and per division.
Provides automated Estimate at Completion (EAC) projections to alert leadership of potential cost overruns months in advance.

4. Advanced Configuration Points#

Automated Actions & Scheduled Tasks (Crons):
- Project: Flag overdue milestone deadlines (project.ir_cron_overdue_tasks): Runs daily to notify project managers of pending schedule delays
- Timesheets: Send unsubmitted reminder alerts (hr_timesheet.ir_cron_timesheet_reminder): Runs weekly on Friday afternoon to remind team members
Custom Print Templates & Reports:
- Project Status & Milestone Execution Scorecard
- Interim Payment Certificate (IPC) for Construction
- Project Timesheet & Resource Utilization Summary
- Earned Value Management (EVM) Financial Report
Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#

Error Symptom / Exception	Probable Root Cause	Corrective Action / Resolution
`Access Rights Error: Cannot view confidential task`	User is not listed as a project follower or team member.	Add user to Project Privacy Settings or Collaborators tab.
`Validation Error: Timesheet date outside active stage`	Attempting to log labor against a closed or cancelled milestone.	Select an active task stage or request reopening of the target work package.
`Billing Rate Error: Missing employee cost rate`	Assigned employee lacks an hourly labor cost rate on their profile.	Configure the employee hourly cost rate under Human Resources → Employees → HR Settings.