Actual Cost of Work Performed (ACWP) is a key metric in Earned Value Management (EVM) (EVM) that represents the total cost incurred for completed work during a specific period. It is used to compare planned and actual costs to measure project performance.
How ACWP Affects Construction Project Tracking
By monitoring ACWP, project managers can assess whether a project is staying within budget or experiencing cost overruns. Comparing ACWP with Earned Value (EV) and Planned Value (PV) helps identify financial inefficiencies.
Using ACWP for Better Cost Control
- Track actual labor and material costs against project estimates
- Analyze variances between planned and actual expenditures
- Adjust resource allocation to maintain financial stability
Related Terms: Earned Value (EV), Cost Performance Index (CPI), Cost Variance (CV), Planned Value (PV)
FAQs
How is ACWP different from Planned Value (PV)?
A: ACWP reflects actual costs incurred, while PV represents the estimated budget for scheduled work.
What happens if ACWP exceeds Earned Value (EV)?
A: It indicates a cost overrun, meaning the project is spending more than planned for the completed work.