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Earned Value Management

Earned Value Management (EVM)

EVM Terms Reviewed by forProject Technology - updated Sep 2026
Quick definition: Earned Value Management (EVM) is a management approach that integrates a project's scope, schedule, and cost to give objective, data-driven performance measurement and more realistic forecasting.

EVM is an approach that ensures that project scope, cost, and schedule are integrated into a comprehensive plan, and that both accomplishments and spending are tracked against that plan. The time-phased plan is reflected in Budgeted Cost for Work Scheduled (BCWS). Actual accomplishment is measured by Budgeted Cost for Work Performed (BCWP). Actual spending is tracked with Actual Cost of Work Performed (ACWP). Comparisons of these metrics provide good indicators of both cost and schedule performance.

What this means for you

EVM gives Project Managers and stakeholders an early warning system for cost and schedule problems, often well before they'd otherwise be obvious. It's required on many U.S. government contracts and is widely used elsewhere as a best practice for large or complex projects.

Also known as
N/A
Used in
Earned Value Management System implementation; Contract Performance Report; Integrated Program Management Report

FAQ

Is Earned Value Management only used on government contracts?
No. It's required on many U.S. government contracts above certain thresholds, but other organizations use it voluntarily on large or complex projects as an effective project management practice.
What are the three core data points behind EVM?
Planned Value (BCWS), Earned Value (BCWP), and Actual Cost (ACWP). Comparing these three figures is the basis for most other EVM performance metrics.
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