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A performance evaluation of the North Minahasa Regency Government Library Building has found that the construction project achieved strong cost efficiency after its initial implementation phase, although schedule performance remained slightly behind the original plan. The study was conducted by researchers from Politeknik Negeri Manado and published in 2026 in the Jurnal Multidisiplin Madani (MUDIMA). By applying the Earned Value Management (EVM) method, the researchers demonstrated how project managers can monitor construction costs and work progress simultaneously, providing practical insights for improving public infrastructure management in Indonesia.
As Indonesia continues to invest in public infrastructure,
effective project management has become increasingly important.
Government-funded construction projects are expected not only to meet quality
standards but also to stay within budget and finish on schedule. Delays and
cost overruns can reduce public confidence, increase financial burdens, and
postpone the delivery of essential public services.
One of the most widely used tools for monitoring
construction performance is Earned Value Management (EVM). Unlike
traditional project monitoring, which often examines cost and schedule
separately, EVM combines both indicators into a single performance measurement
system. This approach enables project managers to detect problems early,
evaluate project efficiency, and make corrective decisions before delays or
budget overruns become more severe.
To demonstrate the practical application of this method, the
researchers evaluated the construction of the North Minahasa Regency Government
Library Building. The project represents an important public investment
designed to improve educational resources and community access to information.
Because public construction projects involve significant government funding,
continuous monitoring of cost efficiency and work progress is essential to
ensure accountability and successful project delivery.
The research adopted a quantitative case study approach
using project management data collected throughout the construction period.
Rather than conducting laboratory experiments, the researchers analyzed project
planning documents, construction schedules, Bills of Quantities (BoQ), budget
reports, and weekly progress records. These data were processed using the
Earned Value Management framework.
Three principal performance indicators formed the basis of
the evaluation:
- Budgeted
Cost of Work Scheduled (BCWS), representing the planned value of work
according to the project schedule.
- Budgeted
Cost of Work Performed (BCWP), representing the value of work actually
completed.
- Actual
Cost of Work Performed (ACWP), representing the actual expenditure
incurred during project implementation.
Using these indicators, the researchers calculated project
performance week by week throughout the 32-week construction schedule.
They also performed Cost Variance (CV) analysis to determine whether the
project was spending more or less than planned at each stage of construction.
The financial evaluation began with a detailed estimate of
the total construction budget. The analysis calculated a total project cost of
approximately Rp8.54 billion, increasing to Rp9.47 billion after
the addition of 11 percent tax. The budget covered seventeen major work
packages, including site preparation, foundations, reinforced concrete
construction, roofing, architectural finishing, plumbing, mechanical and
electrical systems, and final completion works.
The week-by-week Earned Value calculations revealed distinct
phases of project performance.
During the first five weeks, actual physical progress
remained below the planned schedule. This is common in construction projects
because early activities—including mobilization, site preparation, procurement,
coordination, and administrative work—consume significant resources before
producing measurable construction output. As a result, the value of completed
work (BCWP) remained lower than the planned value (BCWS), while actual
expenditures had already begun to accumulate.
From approximately Week 6 onward, project performance
improved considerably. Construction productivity increased as major structural
work progressed, labor utilization became more efficient, and material supply
stabilized. The value of completed work rose steadily throughout the middle
stages of construction, indicating stronger project execution and improved
field coordination.
Several important findings emerged from the Earned Value
analysis:
- The
total project budget reached approximately Rp9.47 billion,
including applicable taxes.
- Weekly
monitoring covered the entire 32-week implementation period,
allowing continuous measurement of project performance.
- Physical
progress accelerated significantly after the initial mobilization stage.
- By the
end of the observation period, the project achieved a BCWP of Rp9.30
billion, compared with a planned BCWS of Rp9.47 billion,
indicating that construction progress was only slightly behind schedule.
- Actual
project expenditures remained substantially below the planned budget
during much of the implementation period, suggesting effective cost
control.
The Cost Variance analysis provided additional insight into
project efficiency. During the first five weeks, Cost Variance values were
negative because the project incurred relatively high initial expenditures
while physical progress remained limited. However, beginning in Week 6,
Cost Variance became consistently positive and remained positive until the end
of the monitoring period. This indicates that the value of completed work
exceeded the actual costs incurred, reflecting increasingly efficient resource
utilization throughout the remainder of the project.
The findings demonstrate that Earned Value Management
(EVM) is more than a financial reporting technique. When applied
consistently throughout a construction project, it becomes an effective
management tool for identifying cost trends, monitoring schedule performance,
and supporting timely decision-making. For public infrastructure projects,
where accountability and budget transparency are essential, this approach
allows project managers to recognize potential problems before they develop
into significant delays or financial losses.
The researchers observed that although the project displayed
strong cost efficiency after the initial implementation stage, schedule
performance still required attention. At the conclusion of the monitoring
period, the Budgeted Cost of Work Performed (BCWP) remained slightly
below the Budgeted Cost of Work Scheduled (BCWS). This difference
indicates that while construction costs were well controlled, a small portion
of the planned work had not yet been completed according to the original
schedule. Consequently, project managers should prioritize the remaining
critical activities to avoid delays in project handover and administrative
completion.
Another important contribution of the study is its
explanation of why project performance changed over time. During the first five
weeks, the project recorded negative Cost Variance (CV) values because
actual expenditures exceeded the earned value of completed work. According to
the researchers, this situation resulted primarily from unavoidable early-stage
expenses, including mobilization, site preparation, temporary facilities,
procurement activities, labor preparation, and indirect project costs. Although
these expenditures were necessary, they generated limited measurable
construction progress during the project's initial phase.
After the mobilization stage, project performance improved
considerably. From Week 6 through Week 32, Cost Variance remained
positive, indicating that the value of completed work consistently exceeded the
actual costs incurred. The researchers attribute this improvement to better
workforce productivity, more efficient equipment utilization, improved sequencing
of construction activities, stronger material management, and more effective
coordination among project teams. These factors enabled the project to complete
work more efficiently while maintaining lower-than-budgeted expenditures.
However, the researchers caution that a positive Cost
Variance should not automatically be interpreted as evidence of higher profits
or the complete absence of financial risks. Actual project expenditures may
still be affected by delayed supplier invoices, outstanding subcontractor
payments, pending procurement transactions, or administrative recording delays.
Therefore, Earned Value results should always be verified using project
cash-flow records, payment documentation, procurement reports, and financial statements
before drawing final conclusions regarding project profitability or financial
performance.
The study has several practical implications for Indonesia's
construction sector.
For government agencies, the findings support wider
adoption of Earned Value Management as a standard monitoring tool for publicly
funded infrastructure projects. Continuous performance evaluation can
strengthen transparency, improve budget accountability, and reduce the likelihood
of costly project delays.
For construction companies, the research demonstrates
the importance of integrating cost monitoring with schedule management rather
than evaluating each independently. Combining these indicators enables managers
to respond more quickly when deviations occur.
For project managers, the study highlights the value
of conducting regular weekly performance evaluations throughout project
implementation. Early detection of declining productivity or rising
expenditures allows corrective measures to be implemented before problems
become more difficult and expensive to resolve.
For researchers and engineering educators, the
project provides a practical case study demonstrating how Earned Value
Management can be applied to real public infrastructure projects in Indonesia,
offering valuable learning material for future civil engineers and construction
management professionals.
According to the researchers from Politeknik Negeri
Manado, the Earned Value analysis indicates that the North Minahasa
Government Library Building project achieved favorable cost performance after
the initial construction phase. Nevertheless, they emphasize that maintaining
schedule performance remains equally important. They recommend accelerating the
remaining work, improving coordination among construction teams, ensuring
timely material deliveries, and closely monitoring critical construction
activities that could influence project completion. The researchers conclude
that Earned Value Management serves not only as a tool for measuring cost
efficiency but also as an early warning system that supports better
managerial decision-making throughout the entire project lifecycle.
Overall, the research demonstrates that successful
infrastructure delivery depends on balancing both financial efficiency and
timely execution. By integrating cost and schedule monitoring into a single
management framework, Earned Value Management provides project stakeholders
with clearer insight into project performance and contributes to more effective
management of public construction projects across Indonesia.
Author Profile
The research was conducted by a team of researchers from
Politeknik Negeri Manado specializing in civil engineering, construction
management, project cost control, and infrastructure development. Their
work focuses on improving the efficiency and accountability of construction
project management through the application of quantitative performance
evaluation methods, including Earned Value Management.
Source
Article Title: Earned Value Management Analysis of
the North Minahasa Regency Government Library Building Construction Project
Journal: Jurnal Multidisiplin
Madani (MUDIMA)
Publication Year: 2026
Volume & Pages: Vol. 6, No. 6, June 2026, pp.
741–754
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