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Earned Value Method

Earned Value Method

EVM Terms Reviewed by forProject Technology - updated Sep 2026
Quick definition: An Earned Value Method (EV Method) is the specific technique chosen in advance to control how earned value, or Budgeted Cost for Work Performed (BCWP), is calculated as work progresses.

Before work begins, each Work Package is assigned an EV Method that defines how its earned value will be calculated. Common choices include Percent Complete, Weighted Milestone, Units Complete (also called Equivalent Units), Level of Effort (LOE), and Apportioned Effort. The optimal choice depends on the nature of the work: whether its output can be measured objectively, whether progress is tied only to the passage of time, or whether it moves in step with other measured work.

What this means for you

Choosing an appropriate EV Method matters because a poor fit can distort performance data — for example, using Level of Effort for discrete work can mask real schedule problems since LOE always earns value exactly as planned. Locking in the method before work starts also keeps earned value reporting objective, rather than left to subjective mid-project judgment calls.

Also known as
EV Technique, Earning Method
Used in
Budgeted Cost for Work Performed calculations for a Work Package

FAQ

Who decides which EV Method to use for a Work Package?
The Control Account Manager typically selects the EV Method during planning, based on the type of work and what can be objectively measured.
Can the EV Method be changed mid-project?
Generally no — changing methods after work has started undermines the objectivity of earned value data, so it's meant to be fixed during planning.
Definition maintained by forProject Technology.
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