Earned Value

EVM Glossary: 100 Earned Value Terms in Plain English

The complete reference for every earned value management term — 100 definitions, written in plain English for project managers and commercial teams.

Will Doyle

6 March 2026 · 15 min read

A 4 terms

Accepted ProgrammeThe programme identified in the NEC4 Contract Data or the latest programme accepted by the Project Manager.

Activity ScheduleA list of activities the Contractor expects to carry out, each with a lump sum price.

Actual CostActual Cost (AC) is the total amount you've actually spent to deliver the work measured in Earned Value. That's it.

Apportioned EffortWork that can't be measured independently — its progress is determined by the progress of another, related work package.

B 4 terms

Baseline ChangeA formal, authorised adjustment to the Performance Measurement Baseline (PMB) that resets the reference point against which project performance is measured.

Baseline Execution IndexMeasures how well the project is executing against its original baseline plan, combining both schedule and scope completion into a single ratio.

Bill of QuantitiesA document listing measured items of work with quantities and rates, used for pricing, payment, and valuation on construction contracts.

Budget at CompletionBudget at Completion (BAC) is the total approved budget for the project — the number every other EVM metric hangs from.

C 16 terms

Cash Flow ForecastPredicts when money flows in and out of a project. On NEC4 contracts, it drives everything from working capital planning to pain/gain share timing.

Compensation EventAn event that entitles the Contractor to a change in the Prices and/or the Completion Date under NEC4.

Contingency ReserveBudget set aside for identified risks that may or may not materialise. It sits within the Performance Measurement Baseline, unlike Management Reserve.

Contract Budget BaseThe Contract Budget Base (CBB) is the total authorised budget, comprising the Performance Measurement Baseline (BAC) plus Management Reserve.

Control AccountThe management control point where scope, budget, and schedule are integrated and where EVM performance is measured.

Control Account ManagerThe person responsible for managing the scope, schedule, and budget within a single control account. They own the EVM data for their CA.

Cost Growth IndexTracks how much the forecast final cost (EAC) has grown relative to the original budget (BAC) over time. A trend metric, not a snapshot.

Cost Loaded ScheduleAssigns budget values to programme activities, creating the time-phased budget that becomes your Planned Value baseline.

Cost Performance IndexThe Cost Performance Index (CPI) tells you how much value you're getting for every pound spent. A CPI of 1.0 means on budget. Above 1.0 means under budget.

Cost Performance ReportThe formal document that presents earned value data, variances, and forecasts to project stakeholders. Where the numbers become decisions.

Cost Value ReconciliationCVR compares the value of work done against the cost of doing it — the UK construction industry's home-grown version of earned value analysis.

Cost VarianceThe difference between the value of work completed and the actual cost. Positive CV means under budget. Negative means over budget.

Cost Variance PercentageExpresses the cost variance as a proportion of earned value, making it easier to compare performance across projects of different sizes.

Critical Path Length IndexAnswers a question SPI can't: can this project actually finish on time? Combines critical path float consumption with schedule performance.

Cumulative CPIThe Cost Performance Index calculated from day one of the project to the current reporting date.

Current Period CPIThe CPI calculated for a single reporting period only. Not cumulative. Not smoothed. Just this month's earned value divided by this month's actual cost.

D 5 terms

Defects Liability PeriodThe fixed window after practical completion during which the contractor is obligated to return and fix defects at their own cost.

Defined CostThe NEC4 term for the actual, reimbursable costs of providing the works.

Delay AnalysisThe process of determining the cause, responsibility, and impact of schedule delays on a construction project. It sounds academic. It isn't.

Disallowed CostMoney the contractor has spent but the Project Manager won't reimburse.

Discrete EffortWork that produces a specific, measurable output — something you can point at and say "that's done" or "that's not done".

E 11 terms

Early WarningA formal NEC4 notification under clause 16 that something could increase the Prices, delay Completion, delay a Key Date, or impair performance.

Earned ScheduleA time-based extension to EVM that measures programme performance in units of time rather than cost.

Earned ValueEarned Value (EV), also called BCWP, is the metric that makes earned value management different from simple cost tracking.

Earned Value ManagementA project controls methodology that measures physical progress against a cost-loaded baseline.

Earned Value Management SystemThe formal, integrated set of processes, tools, roles, and governance that implements EVM across a project or organisation.

Earned Value TechniqueThe specific method you choose to measure progress on a work package — from simple milestones to percent complete.

EIA-748 StandardThe benchmark standard for earned value management system compliance, covering 32 guidelines across 5 categories.

Estimate at CompletionEAC is the forecasted total cost of a project from start to finish, based on actual performance to date.

Estimate to CompleteETC tells you how much more money you need to spend to finish the project.

EVMS System DescriptionThe formal document that explains how your organisation implements earned value management.

Extension of TimeA contractual adjustment to the completion date when qualifying delay events prevent the contractor from finishing on time.

F 5 terms

Fee PercentageThe NEC4 contractor's mark-up on Defined Cost covering head office overheads, profit, and corporate risk.

Final AccountThe agreed total cost of a construction project after every variation, claim, compensation event, and adjustment has been settled.

Final AssessmentThe NEC4 Project Manager's last calculation of the total amount due to the Contractor.

Fixed Formula MethodA shortcut for measuring earned value on activities where detailed progress measurement isn't practical.

FloatThe amount of time an activity can slip before it delays something else.

H 1 term

Hit RateMeasures the percentage of tasks that finish on or before their baseline finish date.

I 4 terms

Independent Estimate at CompletionA mathematically derived forecast of final project cost calculated purely from earned value data, independent of the project team's own estimate.

Integrated Baseline ReviewA joint assessment to verify that the performance measurement baseline is realistic, achievable, and represents the full scope of work.

Integrated Program Management ReportThe standardised reporting format for earned value data on government contracts.

Interim ValuationA periodic assessment of work completed on a construction project, used to determine how much the contractor should be paid.

L 2 terms

Level of EffortWork measured by the passage of time, not by any tangible output.

Liquidated DamagesPre-agreed damages payable by the contractor to the client for late completion of the works.

M 2 terms

Management by ExceptionThe governance principle that says you don't review everything — you only review what's going wrong.

Management ReserveBudget held outside the Performance Measurement Baseline for risks you haven't identified yet.

O 3 terms

Organisational Breakdown StructureA hierarchical chart showing who's responsible for what on your project.

Over Target BaselineA new performance measurement baseline set higher than the original budget when the project is in significant overrun.

Over Target ScheduleA revised schedule baseline established when the original completion date is acknowledged as unachievable.

P 11 terms

Pain/Gain ShareThe risk-sharing mechanism in NEC4 Options C and D that splits cost overruns and underruns between the contractor and client.

Percent CompleteThe most widely used and most widely abused metric in project controls.

Percent SpentThe ratio of actual cost incurred to total budget. Tells you how much of your money you've burned through.

Performance Measurement BaselineThe time-phased budget plan against which project performance is measured.

Physical Percent CompleteMeasures actual tangible progress on a work package based on physical deliverables, not time or money spent.

Planned ValuePlanned Value (PV), also called BCWS, is the budget authorised for the work scheduled to be completed by a given date.

Planning PackageA budget placeholder for future work that hasn't been planned in detail yet.

PreliminariesThe time-related costs of running a construction site that aren't tied to any specific trade or measured work item.

Price for Work Done to DateThe NEC4 term for the total amount due to the contractor at any assessment date.

Progress MeasurementHow you determine what percentage of a work package is complete.

Project Manager AssessmentA subjective estimate of percent complete based on the professional judgement of the person closest to the work.

R 5 terms

Re-BaseliningThe formal process of replacing the current performance measurement baseline with a new one.

Remaining BudgetThe amount of budget left to complete the work, calculated as BAC minus cumulative EV.

Resource LoadingThe process of assigning specific quantities of labour, plant, materials, and subcontractors to each activity in the programme.

Responsibility Assignment MatrixA grid that maps WBS elements to OBS elements, showing exactly who is responsible for each piece of work.

RetentionThe percentage of each interim payment withheld by the client as security against defects and incomplete work.

S 8 terms

S-CurveA cumulative graph of project performance over time that takes the shape of a flattened S.

Schedule Compression IndexCombines cost efficiency and schedule efficiency into a single metric.

Schedule Cost IndexA composite metric combining CPI and SPI into a single number.

Schedule Performance IndexSPI measures how efficiently a project is progressing against its planned schedule.

Schedule Performance Index (t)SPI(t) measures schedule performance in units of time rather than cost — the time-based variant.

Schedule VarianceThe difference between earned value and planned value, expressed in currency units.

Schedule Variance PercentageExpresses schedule variance as a proportion of planned value.

Schedule Variance (t)SV(t) measures how far ahead or behind schedule the project is in units of time rather than cost.

T 8 terms

Target CostThe agreed price for the works against which actual costs are compared to determine the pain/gain share.

Time Estimate at CompletionTEAC forecasts the total project duration based on current schedule performance.

Time Impact AnalysisThe gold standard method for assessing the impact of delay events on a construction programme.

To-Complete Performance IndexTCPI tells you how efficiently you must perform on the remaining work to meet a specific cost target.

To-Complete Schedule Performance IndexTells you how efficiently the remaining work must progress to finish on time.

Total Allocated BudgetThe sum of all budgets allocated to the project, including the Performance Measurement Baseline and Management Reserve.

Total Float Consumption IndexMeasures how fast the project is consuming schedule float relative to the work completed.

Trend AnalysisThe practice of plotting EVM metrics over time to identify patterns, predict outcomes, and trigger interventions.

U 2 terms

Undistributed BudgetBudget that has been authorised for the project but not yet allocated to specific control accounts or work packages.

Units CompleteAn earned value measurement method that counts the number of physical units delivered against the total planned.

V 4 terms

Variance Analysis ReportExplains why earned value metrics have breached their thresholds and what the project team intends to do about it.

Variance at CompletionVAC is the difference between the budget at completion and the estimate at completion.

Variance ThresholdA predefined limit that triggers a formal management review when a control account's cost or schedule performance crosses it.

Variation OrderA formal instruction from the client or contract administrator that changes the scope, cost, or timeline of a construction contract.

W 5 terms

WBS DictionaryThe companion document to the WBS that describes exactly what each element contains — scope, deliverables, budget, schedule, responsible CAM, and EV technique.

Weighted MilestonesAn EVM measurement technique where you assign a budget weight to each milestone and only claim EV credit when that milestone is fully complete.

Work Breakdown StructureA hierarchical decomposition of everything the project must deliver, broken down until you reach the lowest manageable level: the work package.

Work PackageThe lowest level of the Work Breakdown Structure — the level where earned value is actually measured.

Work RemainingThe budgeted value of work that hasn't been completed yet. WR = BAC − EV. The starting point for every completion forecast and resource plan.

Gather Insights

Stop missing compensation events.
Start recovering what's yours.

Book a Demo → Explore the EVM Guide