Project Finance

The visibility of potential cost and schedule overruns and early warning of future risks are crucial to the health and success of any project. Project failure costs US companies in excess of $145 Billion per year, with cost overruns in the region of 200%, and schedule overruns of up to 300%.

'Earned Value Management (EVM) is a system of Project Control, which is based on a structured approach to planning, cost collection and performance measurement'. (APM EVM Guide for the UK)

EVM can provide programme and project stakeholders with data analysis that focuses management attention and decision making, by enabling

• Accurate measurement of Achievement and comparison with Planned and Actual Costs.
• Quantitative measure of slippage in terms of Cost and schedule.
• Early indication of problems.
• Management by Exception.
• Regular Forecasting, and Estimate at Completion.
• Improved Risk Management.

Enforces a disciplined 'Best Practice' approach to project planning, Management and Control.

Earned Value Management has been adopted as the project finance tool of choice for Reed PS. We recognise that it encourages and exploits a thorough scheduling, budgeting and quality management environment, with benefits that are commensurate with the rigour that is applied to the environment. It is a proven process that provides a benchmark for meticulous project planning and change management used in many Government, Defence and Private sectors.

Reed PS can deliver Consultancy services to organisations who would like to transition to the Earned Value methodology.