Mitigating Time and Cost Overruns in Construction Projects: A Questionnaire Study on Integrating Earned Value Management and Risk Management

Abstract

One of the persistent challenges in the construction industry is accurately estimating time and costs for civil engineering projects. Inadequate planning in these areas can lead to unexpected expenses and delays. The main goal of this study is to evaluate the impact of Earned Value Management (EVM) and risk management on factors such as project schedule, project costs, and design defects. For this research, a questionnaire was designed and disseminated to subject matter experts in Iran. Geographically, the participation rates were 38.49% in East Azerbaijan, 31.65% in West Azerbaijan, and 26.86% in the Tehran Province. Data was analyzed using SPSS and AMOS software. Structural equation modeling results indicate that both risk management and Earned Value Management (EVM) have a positive influence on project time (0.53) and cost (0.60). The analysis suggests that the EVM system and risk management directly and positively affect project time management. Moreover, the information phase of the Evam system notably impacts project time and cost management, whereas the performance phase contributes to reducing design defects and enhancing project quality.