What Is Cost Value Reconciliation (CVR) in Construction?

<div class="ge-article-wrapper"><article class="ge-article-body"><p>Cost Value Reconciliation (CVR) compares the value of work done against the cost of doing it. It's the UK construction industry's home-grown version of earned value analysis. Every QS in the country knows CVR. The value column is what you'd claim. The cost column is what you've spent. The difference is your margin, or your loss.</p><p>This term is part of the <a href="/en/earned-value/definitions">earned value definitions glossary</a>.</p><h2>CVR vs EVM</h2><div class="ge-table-wrap ge-anim"><table class="ge-table"><thead><tr><th>CVR Term</th><th>EVM Equivalent</th><th>Notes</th></tr></thead><tbody><tr><td>Value</td><td><a href="/en/earned-value/definitions/earned-value">Earned Value (EV)</a></td><td>Approximately equivalent</td></tr><tr><td>Cost</td><td><a href="/en/earned-value/definitions/actual-cost">Actual Cost (AC)</a></td><td>Same concept</td></tr><tr><td>Margin (Value - Cost)</td><td>Cost Variance (EV - AC)</td><td>Same calculation</td></tr><tr><td>No equivalent</td><td><a href="/en/earned-value/definitions/planned-value">Planned Value (PV)</a></td><td>CVR lacks schedule dimension</td></tr></tbody></table></div><p>The critical difference: CVR has no time dimension. It tells you whether you're making or losing money, but not whether you're on programme. EVM adds the schedule dimension through PV and <a href="/en/earned-value/definitions/schedule-performance-index">SPI</a>.</p><h2>Worked Example</h2><span class="ge-worked-label">Worked Example</span><div class="ge-callout ge-anim"><p><strong>Scenario:</strong> A £18M NEC4 Option C project at month 8.</p><p>CVR: Value £9.2M, Cost £9.8M, Margin -£600K (losing money).</p><p>EVM: EV £9.2M, AC £9.8M, PV £10.5M. CPI = 0.94 (over budget), SPI = 0.88 (behind programme).</p><p>CVR tells you the £600K loss. EVM tells you the loss AND that you're £1.3M behind programme, which will make the loss worse.</p></div><h2>Common Mistakes</h2><ol><li><strong>Using CVR as a substitute for EVM.</strong> CVR lacks the schedule dimension.</li><li><strong>Inconsistent value measurement.</strong> Value must match the same scope as cost.</li></ol><div class="ge-product-note ge-anim"><p><strong>How Gather helps.</strong> Gather produces both CVR and full EVM from your site diary data. <a href="https://gatherinsights.com/contact">Book a demo</a>.</p></div><h2>Frequently Asked Questions</h2><h3>Should I use CVR or EVM?</h3><p>Both. CVR for quick commercial health checks. EVM for full performance analysis including schedule. On NEC4 Option C, EVM gives you the forecasting power that CVR lacks.</p></article></div>