Earned Value Calculation

Let's answer the question, how is earned value calculated.

A project's Earned Value is summarized based on the earned values of each of its phases. The calculation for each phase may differ depending on the billing format used.

Fixed Fee Phases: Percent Complete multiplied by the Fee Amount

Hourly Phases: Total of Billing Values from related billable time slips

Hourly NTE Phases: The lesser of the not-to-exceed limit or the total of Billing Values from related billable time slips.

NOTE: The percent complete for each phase is set by you or your project managers based on the work completed.

Here is a video showing this used on a project: Watch Now

Earned Values and WIP Calculations

Earned Values represent how much fee you have earned, Work In Progress is how much of that fee is ready to be billed.

What is Earned Value?

Earned Value is a term used in the AE industry to indicate how much fee has been earned based upon work completed.

Phase Billing Formats

These formats determine how a phase will be invoiced to your client.

Understanding Billing Formats

This video runs thru Fixed Fee, Hourly, and Not to Exceed. It also talks about how we eliminate accidental over billings.

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