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AACE International Exam CCP Topic 2 Question 15 Discussion
Topic #: 2
After collecting the control information on a light rail project within an original budget of 200.0OO work hours, the construction contractor is ready for their monthly progress meeting with the client.
A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor is 60%.
After collecting the control information on a light rail project within an original budget of 200.000work hours, the construction contractor is ready for their monthly progress meeting with the client.
A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%.
Is the percent complete stated by the contractor correct?
The problem provides key metrics used in Earned Value Management (EVM):
Earned Value (EV): $1,500,000
Actual Cost (AC): $1,000,000
Planned Value (PV): $2,000,000
Key Points:
Schedule Performance Index (SPI):
SPI = EV / PV = $1,500,000 / $2,000,000 = 0.75
An SPI less than 1 indicates the project is behind schedule.
Cost Performance Index (CPI):
CPI = EV / AC = $1,500,000 / $1,000,000 = 1.5
A CPI greater than 1 indicates the project is under budget.
Conclusion: The correct answer is C. Project is behind schedule, but under budget because the SPI indicates a delay in schedule, and the CPI shows that the project is currently spending less than planned.
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