Integrating EVM and ABC for developing risk/rewards sharing metrics of IPD: A web-based management system

Faris Elghaish, Sepehr Abrishami, M. Reza Hosseini, Bahareh E. Dehkordi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Integrated Project Delivery (IPD) is highly recommended to be utilised with Building Information Management, particularly, with BIM level 3 implementation process. The literature review survey highlights that there are financial management challenges that face the proposed integration, these challenges are mainly related to the IPD compensation approach, as well as, the conventional cost control approaches that are not consistent with IPD principles. As such, this paper presents an integration of several methods to support automating sharing risk/rewards among project parties, thus, enhancing the relationship among IPD's core team members. Activity Based Costing (ABC) is integrated into Earned Value Management (EVM) to develop mathematical models that can determine the three main IPD financial transactions fairly (reimbursed costs, cost saving and profit), due to ABC abilities to distinguish between direct, indirect and overhead costs precisely. Since IPD's core team members usually receive their profits by the end of the project, regardless of the project timeline, therefore, a data sharing system is highly needed. As such, a web-based management system is developed to display the output of proposed risk/rewards sharing models, as well as, an innovative grid is developed to show the project status graphically to respect the diversity in core team members educational backgrounds. To demonstrate the applicability of the developed system, a real-life case study was used, in which, promising results were collected in regards to visualising the cost control data, and easy understanding of the accumulative status of the project cost and schedule. In addition, the case study shows that the proposed integration of different methods is interoperable and applicable, particularly, BIM and EVM-web system.
Original languageEnglish
Title of host publication36th CIB W78 2019: Proceedings
Publication statusPublished - 18 Sep 2019

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