Cost Plus Fixed Fee (CPFF) A cost-plus-fixed-fee contract is a type of project management contract in which the contractor is paid a fixed fee plus the actual costs they incurred during the project. Before the project starts, the fixed fee is talked about and agreed upon. It is meant to cover the contractor’s costs and give him…
Cost Plus Incentive Fee Cost-Plus-Incentive-Fee (CPIF) is a type of contract used in project management. In a CPIF contract, the buyer agrees to pay the seller back for the actual costs of doing the work, plus an incentive fee that depends on how well the seller meets certain project goals. In a CPIF contract, the incentive fee…
Cost Variance (CV) Cost variance (CV) is a project management number that measures how much a project actually cost compared to how much it was supposed to cost. It helps figure out if a job is under or over price. The method for figuring out the cost difference is: CV = Earned Value (EV) – Actual Cost…
Critical Path Method The Critical Path Method (CPM) is a way to plan and run complex projects. It is a mathematical formula that helps project managers find the project’s critical path, which is the order of tasks that determines how long the whole project will take. The critical path is found by figuring out the longest chain…
Earned Value (EV) Earned Value (EV) is a project management term that measures the value of the work that has been done up to a certain point in time. The earned value (EV) is a key part of the earned value management (EVM) method, which is a way to measure how a project is going in terms…
Earned Value Analysis (EVA) Earned Value Analysis (EVA) is a project management tool that compares the estimated cost of the work that has been done to the real cost of the work that has been done. This shows how far along a project is. Earned Value Management is another name for the EVA method. (EVM). EVA uses…
Estimate to Complete (ETC) Estimate to Complete (ETC) is a project management measure used to predict how much it will cost to finish a project as a whole. It’s an estimate of how much it will cost to finish the rest of the project’s work, based on the work that has already been done and any changes…
Expected Monetary Value (EMV) Expected Monetary Value (EMV) is a project management technique used to calculate the average outcome of a project when the outcome is uncertain and there are risks involved. EMV is calculated by multiplying the probability of each potential outcome by its corresponding monetary value, and then summing these products. The formula for calculating…
