Publications / 2024 Proceedings of the 41st ISARC, Lille, France
After a slowdown in growth following COVID-19, the global engineering, procurement, and construction (EPC) market has been recovering and experiencing sustained growth since 2021. Nevertheless, the profit margins in the global EPC plant industry continue to decline. This study proposes the earned schedule-delay liquidated damages (ES-DLD) model that integrates the ES concept into the earned value management system (EVMS) to manage project schedules and DLD risks. The model was developed and tested using the project data from the Korean 'P' construction company. The result of applying the model to a single critical path of the Hanoi project was to shorten 12 days, saving $450K compared to the total DLD of $3.6M. Ten days of acceleration were found to be optimal in assessing multiple critical paths, reducing the potential loss by $746K among the total DLD of $3.6M. The model is expected to contribute to lowering DLD risks by accurately predicting project schedule delays through quantitative forecasting during the project execution