Good evening
I am currently on an EPC project as a client-planner. The programme was baseline with the contract sum at the commencement of the project by the Turnkey Contractor. The project is now into a year out of its 2yrs lifespan.
The process I have in place is to request the contractor to send xer at the end of the month, so I can conduct necessary due diligence and produce an earned value report.
My director has just questioned why the contract sum on the EV report has not changed considering, the budget has increased by various VO’S.
My understanding is that VOS must be kept separate except when there’s a need for rebaselining, please correct me if am wrong?
The director then question the relevance of the EV especially SPI if the cost increase due to VO’s
My question is into two parts.
- How do you manage VO’S + SPI in a situation as described above
- Of what relevance is SPI if the cost on the project has increased, but we still use the original budget sum to calculate
Appreciate experience from house gurus, please.
Many thanks
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