Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literature and studies classified as foreign

and local which are all related to our research title.

Related Literature

Foreign Related Literature

According to Frimpong, Oluwoye, & Crawford, (2003). A project is considered to

be successful when it meets the goals set and the objectives identified during project initiation.

It means that the completed project has achieved its technical performance, according to the

planned schedule and within the initial agreed cost (Frimpong, Oluwoye, & Crawford, 2003;

Memon, Abdul Rahman, & Abdul Azis, 2012; Meng & Gallagher, 2012). Time and cost have

been considered as the basis of project management (Memon, Abdul Rahman, & Abdul Azis,

2012) and its importance is widely acknowledged by construction practitioners (Olawale & Sun,

2010) despite the opposite finding found by Ali and Rahmat (2010). The authors found that

functionality is regarded as the most important project performance instead of time and cost.

Different clients have different needs and requirements for their projects. Hence, project

objective is prioritized differently in according to the needs and requirements.

Based on Sambasivan & Soon, (2007). However, as construction projects are

always unique and heterogeneous, it will always encounter many unforeseen events that will

affect the construction process negatively. Frimpong, Oluwoye, and Crawford (2003) as well

as Le-Hoai, Lee, and Lee (2008) both indicated that construction process is a phase that

has always encountered with major problems especially time and cost overruns. Delayed

projects will either been prolonged or speeded up and as a result, the cost will be escalated .
This effect will then cause dissatisfaction among all construction parties involved in the

project as it may affect the end product of the construction project.

Sambasivan & Soon, (2007); Le-Hoai, Lee, and Lee, (2008). The problem of

time and cost overruns in construction projects have been regarded as a global phenomenon

either in developed or developing countries (Abdul Azis, Memon, Abdul Rahman, & Abd. Karim,

2013). Chou, Chen, Hou, and Lin (2010) found that infrastructure projects have

commonly been experiencing scheduling and budgeting problems in the construction process.

This finding maybe due to the fact that infrastructure projects are much more complex and

completed. Hence, it requires additional monitoring and controlling throughout the construction

process.

Based on Memon, Abdul Rahman, & Abdul Azis, (2012). In Malaysia, construction

industry has claimed to encounter chronic problems such as poor performance of time and cost

The authors found that 92% out of 140 respondents agreed that time overrun is a major issue

while 89% of them agreed that cost overrun is a major issue in construction project. Even if

there were numerous number of projects that have been completed by the construction

industry, the projects were said to be of no cost, time and quality effective (Ibrahim, Roy, Ahmed

and Imtiaz, 2010). The author reported that there were major development projects that

encountered time and cost overruns including structural defects in school buildings and

community college buildings as of the end of 2004. Besides that, in 2005, around 17.3% out of

417 government contract projects in Malaysia were mentioned to be either delayed for more

than 3 months or abandoned (Sambasivan & Soon, 2007).

In a case study made by Naderpour and Mofid (2011), a comparison between

application of traditional method and EVM method have been made on an educational centre in

Booshehr, Iran. The initial project control team had planned and analysed the project based

on the traditional method and met with scheduling problem. After 12 months out of 15 months;
the completion period, the project was found to be progressing 45% slower than scheduled. It

was estimated to be delayed for 20 months later and hence, will escalate the cost up to 30%.

Therefore, the project control team was changed and EVM method was applied. The author

found that after applying EVM method, the project manager was able to monitor and control the

project from the exact information of the project details gained from EVM method. As a result,

the project was able to be completed in a short period of time.

Hunter, Fitzgerald and Barlow, (2014). For that reason, a study is made on EVM to

fill in the gap of the lack of literature of EVM as a PPM technique in Malaysia construction

projects. It is believed that the application of EVM in construction projects will result in effective

project monitoring and control to such extend that it allows the project to be within allocated

budget.

According to Elgar and Frick, (2008). MPs are captivating to political leaders and

the public because of their colossal size and the technical hurdles they overcome. Such projects

include Skyscrapers, bridges, tunnels, large public transportation projects, seaports, power

plants, dams, oil and natural gas extraction projects, large-scale sporting facilities, nuclear and

other power plants.

Dalibi, (2015) Most Construction projects be it simple, complex, phase by phase

and MPs are constrained by the available time and budget needed to execute the project. In

most cases, such projects (especially MPs) go over budget due to the longer duration needed to

deliver them. The more time between planning and delivery, the more likely that new challenges

and complexities will arise (Ibid). As such, Project Time and cost challenges if not tackled or

solved will lead to scope creeps and will ultimately bog down any project.

Flyvbjerg, 2003 and Dalibi, (2015) These enormous challenges posed by time

and cost management in terms of project planning and delivery has left project managers and
academicians in search and application of different solutions to the same problems . These

problems may be due to budget monitoring and evaluation processes, tools and techniques

used in the project.

Siu and Lu, (2011) However, several studies have examine such challenges and

proposed solutions which include: Tracking of project performance and progress, trade-offs

between competing project objectives and Simulation of project scenarios for proper decision

making (Dalibi, 2015), Project Time-cost-trade-offs (Jian-xun and De-dong, 2012), The project

performance measures to have minimal total duration, maximal profit, minimal cost, resource

levelling, maximal quality, etc. (Jingwen et al., 2006, Wu and Yin, 2007), How to obtain the

optimal total duration with maximal profit (Jian-xun and De-dong, 2012), Establishing a project

plan and estimate the planned value over the life of the project (Kuhl and Graciano, 2014),

Project simulation-based crashing methods (Bissiri and Dunbar 1999; Gutjahr et al., 2000; Haga

and Marold 2004; Haga and Marold 2005; Kuhl and Tolentino-Pena 2008).

Kuhl and Graciano, (2014). These have led to the use of various project monitoring

and control techniques to enable tracking and measuring of project performance and progress.

There are many Project monitoring and control techniques such as Earned value management

(EVM), Management Information Systems (MIS), Line of Balance (LOB), Site Man hour and

Cost (SMAC), Work Breakdown Structure (WBS) etc. However, among all these, EVM is one of

the most popular techniques with the widest use in construction projects because of its ability to

measure project performance and progress in an objective manner by measuring scope,

schedule, and cost in a single integrated system. EVM is notable for its ability to provide

accurate forecasts of project performance problems due to its significant impact on the areas of

Project planning and control; and similarly, using the methodology improves both scope

definition as well as the analysis of overall project performance

The construction industry is a key driver of economic and infrastructural

growth, significantly contributing to national development through job creation, revenue

generation, and modernization.

According to Engr. Rey S.A. Rimando & Engr. Marijane A. Iglesia — (2025) ·

On the “rating” of utility, CPM had a weighted mean rating of 4.3 (on some scale, presumably of

usefulness), while EVM had 4.4 — indicating a slight edge for EVM in integrated performance

(cost + schedule) monitoring. The combined CPM–EVM framework obtained a higher rating

(4.8), suggesting that integration (both methods together) may be more effective than either

alone. The authors recommend institutional adoption of CPM–EVM for better transparency,

early warning, and accountability in infrastructure/maintenance projects under local agencies

such as the Department of Public Works and Highways (DPWH). · This is a recent (2025), local

(Philippines) study that applies EVM in actual road maintenance projects — not a

theoretical/conceptual piece but a practical evaluation. Though road maintenance may not be

“small residential building,” maintenance and small-scale infrastructure works often have

limited resources and tight budgets — quite similar constraints faced by small contractors. So

the findings are directly relevant to the conditions under which small/medium construction

firms operate. The study shows that EVM (especially when complemented by CPM) can be

effective in integrating cost and schedule monitoring, improving accountability and

performance transparency — which are common challenges in small/medium construction

projects.
 Based on Karen Joi P. Beo and Joseph Raniel A. Bianes (2025), this study

evaluates the performance of capital outlay infrastructure projects at a government higher

education institution in Catanduanes, Philippines, with a focus on cost and time efficiency.

Using a qualitative research approach, it integrates project metrics, stakeholder interviews, and

focus group discussions to identify key challenges and propose strategic interventions. Findings

reveal persistent budget overruns and project delays due to inefficiencies in resource

allocation, inadequate monitoring mechanisms, and deficiencies in quality assurance protocols.

To address these challenges, the study highlights the potential of an Earned Value Management

(EVM) framework to enhance project accountability, streamline coordination, and improve

decision-making processes.

According to Philippines Construction Industry Report (2022,2023), growth

faces challenges, with a revised industry growth forecast of 13.4% for 2022 due to rising

material costs, labor shortages, and inefficient project management. Despite government

investments in infrastructure, the sector’s GDP contribution has fluctuated, dropping from PHP

410,454 million in late 2022 to PHP 280,399 million in early 2023 (Philippines GDP From

Construction - 2023 Data - 2024 Forecast - 2000-2022 Historical, n.d.). A major issue in

Philippine construction is project performance, particularly in public infrastructure projects,

which often suffer from cost overruns, delays, and quality concerns due to poor project

management (Haron et al., 2017). Addressing these inefficiencies requires structured

methodologies that optimize cost, time, and quality, ensuring effective resource allocation, risk

management, and stakeholder coordination.

Effective project management is paramount for the successful completion of construction

projects, ensuring delivery to clients on time, within budget, and with profitable [Link]

the industry embraces digitization, mobile platforms emerge as a crucial tool for efficient

project delivery, especially in times of crisis. The mobile platform application is tailored to meet

the unique demands of the construction industry, encompassing functionalities such as tracking

construction teams, schedules, equipment, materials, and finances, and facilitating file-sharing.

The implementation of this mobile system contributes to collaborative communication among

engineers, contractors, project managers, and owners. The research findings, synthesized from

this analysis, provide insights into the system's effectiveness as a comprehensive management

platform in the construction industry. Finally, the paper outlines the development of a mobile

solution specifically tailored to address challenges prevalent in Region 4A, Philippines, offering a

potential resolution to some of the industry's critical issues and pressures.

Akbar et al., 2019; Witjaksana & Reresi, (2012) This method not only assists

project managers in decision-making but also provides a measurable framework for evaluating

performance. . However, the effectiveness of EVM depends on the accuracy of the data

collected. Initial estimation errors can affect the validity of the analysis results. In the

Margaluyu Phase II road improvement project, for example, estimation errors caused delays at

week 13. This emphasizes the importance of regular data updates to ensure more accurate

analysis (Satrio Rudiantoro, 2020). The application of EVM in construction project management

provides many benefits, ranging from performance monitoring, efficiency evaluation, to

strategic decision-making. By using indicators such as CPI, SPI, ETC, and EAC, project managers
can identify problems early and formulate effective solutions to achieve project success. Case

studies from various projects show that EVM is a reliable tool to ensure projects run according

to plan despite facing complex challenges (Marini et al., 2018; Sulistyo et al., 2021; Yasya et al.,

2019). This study explores the application of the Earned Value Method (EVM) in analyzing the

time and cost performance of construction projects, focusing on critical indices such as the

Schedule Performance Index (SPI), Cost Performance Index (CPI), Estimate at Completion (EAC),

and Estimate to Complete (ETC). Compared to previous studies such as Aditama & Witjaksana

(2021), which evaluated EVM indicators in isolated phases of construction without examining

the dynamics across an extended project timeline, this study provides a comprehensive month-

bymonth analysis of both Cost Performance Index (CPI) and Schedule Performance Index (SPI)

throughout the project duration. Unlike earlier works Setyabudi & Mirnayani (2021) Huda et al.

(2018), which focus on either cost or time efficiency in specific scenarios, this study integrates

both perspectives using detailed EVM calculations and includes Estimate at Completion (EAC)

and Estimate to Complete (ETC) values to forecast project trends. Moreover, it uniquely

identifies deviations and proposes real-time corrective strategies, such as the combined use of

manpower additions and crashing methods, then evaluates their subsequent impact on both

schedule and cost. This dual focus on predictive and corrective action places the study at the

forefront of applied EVM research.

Related Studies

Foreign Related Studies

In the study of Widyarso, R., Witjaksana, B., & Purnama, J. (2025) This

study examined a construction project in Indonesia to assess how effectively EVM can track and
forecast time and cost [Link] demonstrates EVM’s value as a real-time monitoring

and decision-support tool — especially for early detection of inefficiencies in both time and

cost, even in typical (non-mega) construction projects. It also illustrates the limitations:

corrective schedule actions may improve time performance but cost control remains

challenging if root causes (scope, procurement, coordination) are not addressed.

According to Priyo, M. (2021) The study analyzed four building-construction

projects in Indonesia using EVM to evaluate performance in terms of time and cost, and to

forecast project completion. This shows that EVM — even in everyday building projects (not

large-scale infrastructure) — can be valuable for improving planning accuracy and helping

projects finish earlier or below budget. But outcomes still depend heavily on project execution,

scope clarity, and control discipline. It underscores that EVM is not a guarantee — but a useful

management tool to increase the chances of success.

As explained by Alves, T. C. L., Christovam, M., & Soares, A. (2014 )The

authors explore EVM as a progress-control tool on dynamic, multidisciplinary construction sites

where schedule changes, variation orders, and unpredictable events are common. The

combination of EVM with SFI improved the ability to monitor progress and anticipate delays or

schedule deviations. The method allowed more realistic foresight than using cost-based metrics

alone. For projects where scope and schedule are subject to frequent changes (common in real-

world construction), EVM needs to be augmented — simple cost/schedule tracking may not

suffice. The addition of forecasting indicators helps managers make proactive decisions (e.g.,

accept or negotiate variation orders, adjust schedule/resourcing) rather than react late.
 In the study of Thoengsal, J., & Tumpu, M. (2022) This research applied a

variant of EVM (EVM-A) to a small infrastructure project — a concrete road construction — to

examine cost/time performance and estimate real-time completion. The authors used project

implementation reports and financial accounting data to compute: BCWS (Budgeted Cost of

Work Scheduled), ACWP (Actual Cost of Work Performed), and BCWP (Budgeted Cost of Work

Performed / Earned Value). Using these, they forecasted project duration and [Link] case

illustrates that EVM (or EVM-A) is feasible and beneficial even for small infrastructure projects

(roads), not only large buildings or industrial works. When applied properly (with good data and

accounting), EVM can yield reliable forecasts and lead to cost/time savings. This supports the

idea that small-scale or modest-budget projects can still benefit substantially from EVM.

According to Sunarti, N., Pakir Mastan, Z., & Lum Seon Cin, L. (2018) This

study aimed to assess how widely EVM is used among construction firms (surveying, project

management companies) in the Klang Valley region (Malaysia), and to examine its effectiveness

as a cost-monitoring tool compared to traditional cost/schedule [Link] study highlights a

real-world adoption challenge: even though EVM is theoretically beneficial, many construction

firms (especially small to medium) do not use it because of lack of knowledge or perceived

complexity. For EVM’s benefits to be realized broadly, there must be training, capacity-building,

and perhaps simplified EVM frameworks suitable for smaller firms.

Based on the study of Hasan, R. (2021)This case underscores that EVM is

not a magic bullet. Its effectiveness depends on accurate baseline planning (scope, schedule,

cost) and careful execution. If a project deviates seriously (delays, cost overrun, poor planning),
EVM will reflect that — but cannot by itself guarantee success. However, as a

diagnostic/monitoring tool, EVM offers objective data to identify problems early.

According to the study of Utari, R. P., Wahyudiono, S., & Amal, A. S. (2022)

This study applied EVM to a hospital construction project in Kediri, Indonesia — aiming to

monitor cost and schedule performance over multiple check-points during the project

[Link] case shows that EVM — with periodic assessment — can help track and steer a

project back to performance, even if it has early setbacks. It demonstrates the value of frequent

monitoring (milestones/weeks) to manage deviations proactively, and supports the idea that

EVM is beneficial in typical construction projects (not only mega-projects).

Local Related Study

According to Engr. Rey S.A. Rimando & Engr. Marijane A. Iglesia — (2025).

Both traditional scheduling method (Critical Path Method — CPM) and EVM (plus a variant,

Earned Schedule, ES) to five road-maintenance projects in the 4th District of Camarines Sur,

Philippines. They conducted documentary analysis, reconstructed schedule baselines,

computed EVM metrics, and validated via interviews with key project personnel. CPM rated (by

practitioners) with a weighted mean of 4.3, being strong in identifying critical activities and

forecasting schedule delays. EVM got a mean of 4.4, slightly better — especially in cost-

efficiency monitoring and integrated cost/schedule performance analysis. When CPM and EVM

are combined (hybrid CPM–EVM framework), the rating rose to 4.8, suggesting that integrating

both methods yields higher perceived usefulness than using either alone. The authors

recommend that agencies (e.g. state infrastructure agencies) institutionalize the hybrid CPM–
EVM approach to improve accountability, early warnings (cost/schedule), and transparency in

project delivery.