| Summary: | Earned Value Management (EVM) has provided methods to estimate the final budget of projects.
The standard EVM, however, lacks some features which needs further improvement to make it a
more efficient and reliable technique. Lack of concentrating on the financial aspects in estimating
the final budget provides some illusory results. This paper suggests considering the time value of
money, delay in employer payment and contractor cash flow in different phases of the
construction projects in calculating the final budget of the project. Moreover, using a traditional
schedule performance index which is a monetary based method may mislead project managers in
managing construction projects. However, a better metric of schedule performance has been
introduced in Earned Duration Management (EDM) which is illustrated in this paper. A case
study demonstrates the preference of the new method versus the traditional ones.
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