Analysis of Time and Cost Control in a 2-Storey Construction Project Using The Earned Value Method (Case Study: Puri Cempaka Serang Housing Development Project)

ABSTRACT


INTRODUCTION
The construction industry has recently been growing rapidly in terms of technology, project capacity, and required funds, and there are various methods of construction implementation. This can be demonstrated by the large number of large-scale development projects built by the government or the private sector. This fact is a hope and a challenge for business actors, especially construction service companies. Poor planning is a common factor in the problem of project delays. Control management is needed to carry out the project so that it is completed on time as one of the functions and processes of activities in project management that greatly influences the outcome of the project is control which has the main objective of minimizing any deviations that can occur during the project process [1]. Earned value is a tool for simultaneously controlling physical, cost, and schedule (time) performance in an integrated manner, cost progress, and information management related to the scope of procurement, quality, and risk in a broad method to evaluate, analyze and predict project cost performance [2]- [6]. Because the project manager can easily see what is planned, what is being done, and how much it costs, managing projects using the Earned Value method is known as "managing projects openly'' [7]- [15]. A developer can do projects in the housing business sector to make a profitable investment. For this reason, a time and cost analysis method is needed to assess how much deviation has occurred and the remaining time and costs to complete the Puri Cempaka Serang housing project, namely by using the Earned Value method. The housing project reviewed in this study is the Puri Cempaka Serang housing development located on Jalan Kp. Baru, Panancangan, Cipocok Jaya Village, Serang City, Banten Province. This research was conducted with several objectives, such as to determine the cost and delay time of the Puri Cempaka Serang 2-story housing development project using the Earned Value method, to identify the factors causing time performance delays in the implementation of the 2-story Puri Cempaka Serang housing development project, and to estimate the time and final cost required to complete the 2-story Puri Cempaka Serang housing development project. According to [1] [4][5] [15], The idea behind the earned value method is a planned price for the work done. In other words, this idea calculates the amount of the budget available for the job about the number of work units that have been finished at a particular period. For this reason, later, we can see the relationship between what has been achieved in terms of reality and the allocated budget amount.
a. CV (Cost Variance) is the difference in the value obtained after completing the work section with the actual value of the project implementation.
CV (-) = cost is higher than budget, CV (0) = cost is according to plan, CV (+) = cost is less than budget b. SV (Schedule Variance) is the difference between the work that can be done and the planned portion.
SV (-): the actual schedule is late from the planned schedule; SV (0): the actual schedule is on time compared to the planned schedule, SV (+): the actual schedule is faster than the planned schedule c. CPI (Cost Performance Index) compares the value received from doing a task with the actual expenses associated with finishing the task. For physical progress < 50%: ETC = BAC -BCWP (5) For physical progress > 50% : ETC = ((BAC -BCWP))/CPI (5) f. EAC (Estimate At Complete) estimates the total cost required to complete all project work activities based on project cost performance at the time of evaluation with the assumption that project performance will remain (constant) until the end of the project.

RESULTS AND DISCUSSION
The analysis used data from the Puri Cempaka 2-story housing development project with a budget of Rp. 4,546,850,000, which was carried out for 24 weeks. For this study, the review was carried out for 20 weeks, which was carried out from February 14, 2022, to July 3, 2022 (Week 1 to Week 20). Drawing and calculations are done with the help of Microsoft Excel 2016 software.

Calculation of Budget Cost For Work Schedule (BCWS)
The cumulative weekly percentage of plan progress and the BAC value is multiplied to create the Budget Cost For Work Schedule (BCWS) or Planned Value (PV). The Budget At Completion (BAC) value is the contract's overall value after deducting value-added tax (VAT The calculation of the next week can be calculated in the same way as the calculation above. Table 1 below shows the results of the Budget Cost For Work Schedule (BCWS) calculation from week 1 to week 20.   Table 2 shows an increase in the Budget Cost For Work Performed (BCWP) value every week, meaning that the planned cost expenditure for each week of the project has increased.

Calculation of Actual Cost For Work Performed (ACWP)
Actual Cost For Work Performed (ACWP) or Actual Cost (AC) is the actual cost incurred to complete the work during a certain period. Actual Cost For Work Performed (ACWP) consists of: 1. Direct Cost Costs incurred and directly associated with ongoing project activities are referred to as direct costs. Direct costs include: a. Material or material costs The cost of materials or materials is obtained by multiplying the unit price of the material by the volume. b. Wage costs Wage costs are obtained by multiplying the unit price of wages by the volume of work done. c. Tool cost Tool costs are obtained by summing the purchased tools and tool rental costs.

Indirect Cost
Indirect costs are required for each project activity but are not directly related to the activity concerned.
In this project, the indirect cost is 0 rupiah. Table 5 summarizes the Actual Cost of Work Performed (ACWP) calculation from week 1 to week 9.  Table 3, it can be seen that there is an increase in the ACWP value every week, meaning that the cost expenditure for each week of the project has increased.

Calculation of Cost Variance (CV)
Calculation of Cost Variance (CV) in week one and week 20 as follows: Cost Variance (CV) with a positive value (+) indicates that the costs incurred exceed the budget plan. At the same time, a negative value (-) Cost Variance (CV) shows that the costs incurred are higher than the budget plan.  A positive value (+) Schedule Variance (SV) shows the time the work is carried out ahead of schedule. While a negative value (-) Schedule Variance (SV) shows the time the work is completed later than the schedule.

Cost Performance Index (CPI)
The calculation of the Cost Performance Index (CPI) for week 20 is as follows: Week 20: CPI = BCWP / ACWP = (Rp. 2,069,544,246)/(Rp. 2,768,251,156) = 0,75 This value indicates that the CPI < 1 means the expenditure exceeds the budget. The next week's calculation can be calculated in the same way as the calculation above.

Schedule Performance Index (SPI) Calculation
The calculation of the Schedule Performance Index (SPI) for week 20 is as follows: Week 20: SPI = BCWP/BCWS = (Rp. 2,069,544,246)/(Rp. 3,478,249,313) = 0,595 This value indicates that SPI < 1, meaning that the project implementation time is delayed from the planned schedule. The next week's calculation can be calculated in the same way as the calculation above. Table 6 summarizes the calculation results of the Cost Performance Index (CPI) and Schedule Performance Index (SPI) values from week 1 to week 20.   Table 7 shows a recapitulation of the calculation results of Estimate To Complete (ETC), Estimate At Completion (EAC), and Time Estimate (TE) from week 60 to week 67.  Table 7 shows that the estimated project completion time (TE) is 41 weeks. This time is 17 weeks longer than the total project completion plan of 24 weeks, with an estimated final project cost (EAC) of Rp. 5,245,556,910.

Analysis of Project Delay Factors
The results of the analysis and calculation of project performance show that the project is delayed from the planned schedule. This is due to the following factors: 1. The efficient start of the project needs to be corrected with the schedule because the housing construction project is mass. The contractor is also working on a one-story house, so the implementation work in the field is divided. 2. Working or shop drawings that are late in coming out and their gradual submission, thus preventing the contractor from doing the next job. 3. Urugan soil has yet to be fulfilled because the original soil conditions are lacking. 4. The project time coincided with the month of Ramadan and, at the same time, the Eid al-Fitr 2022 holiday, where all elements of construction work were temporarily suspended, as well as workers who get part of the Eid holiday for ± 1 month. c. The estimated time and cost of completing the project required is 41 weeks for Rp. 5,245,556,910, meaning that the realization cost exceeds the budget plan of Rp. 4,546,850,000. These results show that the project is 17 weeks late from the planned 24 weeks.