Model for Calculating the Estimate-At-Completion (EAC) in Building Construction Projects in U.A.E. (EVM8)

Abstract

The building construction sector plays a crucial role in national economic development, yet it often faces cost and time overruns. In the UAE, rapid urbanization and economic growth intensify these challenges, driven by fragmented project structures, frequent design changes, and external market fluctuations. The managers of a construction project always face the risk of exceeding their initially set budgets. This research introduces an enhanced Estimate-At-Completion (EAC) model, EVM8, tailored to the UAE's construction industry but can be applied to other regions with minor customization. Unlike traditional Earned Value Management (EVM) models that rely primarily on cost and schedule indices, EVM8 incorporates additional factors (or indices) such as quality, safety, risk, team dynamics, market conditions, and regional stability. The study employs a comprehensive literature review, a structured survey targeting UAE construction professionals, and case studies of high-rise and low-rise buildings to validate the model. Findings demonstrate that EVM8 provides more accurate EAC predictions by integrating new metrics and reducing project overruns. This research contributes theoretically by expanding EVM to include multifaceted variables and practically by equipping UAE construction professionals with a robust practical tool for precise cost forecasting. The EVM8 model offers a valuable framework for enhancing project management, supporting the successful delivery of construction projects in dynamic environments. Keywords: Earned Value Management, Estimate-At-Completion, Building Construction Projects, Cost Index, Schedule Index, Quality Index, Risk Index, Safety Index, Team Status Index, Market Status Index, Regional Stability Index