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COST OVERRUN IN RESIDENTIAL PROJECTS

Muhammed Rafeek P A, Ms. P Mangaiyar Thilagam, Dr. A Kumar, Dr. D bhuvaneswari

Abstract


The construction industry faces significant challenges in managing cost and schedule performance due to material price fluctuations, labor variability, design modifications, and complex project planning. Accurate monitoring of budget versus actual costs is critical, particularly in residential building projects ranging from G+2 to G+5. Earned Value Management (EVM), integrated with digital project management tools such as Primavera P6, provides a quantitative framework for assessing project performance by linking scope, cost, and schedule data. This literature review synthesizes studies from 2020–2024, examining the application of Primavera P6 for cost-loaded scheduling, progress tracking, and EVM metric computation (PV, EV, AC, CV, SV, CPI, SPI). The review highlights case studies demonstrating the effectiveness of quantity-based progress measurement, weekly actual cost updates, and baseline management in predicting cost overruns and schedule slippages. Challenges such as data entry inconsistencies, material price volatility, and misestimation of progress are discussed, along with resource optimization and time–cost trade-off strategies. Best practices for accurate budget versus actual analysis are identified, including cost-loading, baseline locking, integration with site accounting systems, and regular variance monitoring. The review concludes with identified research gaps, including the integration of AI/ML for predictive forecasting, multi-project tracking, and standardized methods for material price adjustment. This study provides a comprehensive framework for practitioners and 2 researchers aiming to improve cost and schedule performance evaluation in residential construction using Primavera P6 and EVM.

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References


Forward-Looking State-of-the-Art Review on Earned Value in Construction — Aramali et al., ASCE (2022).

Short summary: Comprehensive review of EVM practice in construction; discusses how Primavera is used to produce EV metrics (PV, EV, AC) and how those metrics identify budget vs actual gaps and improve forecasting. ASCE

Library+1

Microsoft Project & Primavera P6 for Project Management — Desai et al., ScienceDirect/Conference Article (2023).

Short summary: Comparative study of MSP vs Primavera for scheduling and cost control on a residential project — shows Primavera gives more robust

cost-loaded scheduling and clearer PV/EV/AC outputs for variance analysis. ScienceDirect

Visual and Virtual Production Management System for Construction (EVM references & Primavera) — Lin et al., ASCE (2021).

Short summary: Discusses integration of EVM metrics with Primavera cloud for cost and schedule control; includes case observations where CV/SV signalled early budget deviations. ASCE Library

Performance measurement of schedule & cost analysis using Earned

Value Management for a residential building (case study) — ResearchGate

/ conference/thesis item (circa 2021–2023).

Short summary: Residential building case showing how Primavera-calculated EV indicators (CPI, SPI) reveal actual cost vs budgeted cost early in the

construction phase; recommends weekly AC updates. ResearchGate+1

Analysis of Cost & Time Variance in Construction Projects using CV & SV Parameters — Case Study — ResearchGate (regional study, 2021–2023). Short summary: Uses CV and SV to quantify overrun; shows that negative CVs in early weeks predicted final budget overruns — Primavera/EVM suggested as analysis tool. ResearchGate

Project Management Analysis for a Multi-storey Building using Analytical Data and Primavera — Journal of Physics: Conf. Ser. (2024). Short summary: G+3 residential case where manual schedule vs Primavera outputs were compared; Primavera’s cost-loaded baselines helped highlight budget/actual gaps for foundation and finishing works. ResearchGate

Practical guides & student projects using Primavera for budget vs actual examples — assorted ScienceDirect / conference teaching materials (2020– 2023).

Short summary: Multiple pedagogical reports demonstrate common pitfalls (incorrect %complete, poor AC mapping) that create misleading budget vs actual results — recommends quantity-based EV for accuracy. portfolio.cept.ac.in

Material price volatility & budget-to-actual gap — regional analyses (2020–2024) — various ScienceDirect/ResearchGate items. Short summary: Studies across regions show that sudden steel/cement price increases explain large portions of actual > budget; Primavera helps quantify impact but cannot control market-driven cost changes. ScienceDirect+1

Resource optimization and time–cost tradeoff studies using Primavera — conference & journal case studies (2021–2023). Short summary: Demonstrates how crashing/resource-levelling in Primavera re-forecasts cost and produces new budget vs actual comparisons — often reducing schedule overrun but increasing direct cost. ScienceDirect+1

Technical note: How Primavera calculates AC & EV (implications for budget vs actual reporting) — tutorials and technical articles (2022–2023). Short summary: Explains differences between site accounting records and Primavera AC/EV computations — clarifies why studies may report discrepancies when data entry or cost-coding is inconsistent.


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