Re-baselining of the NEC3 programme for EVM to a fixed baseline

Under an ECC3 Option C contract, how can the Contractor submit a “realistic” revised programme if the Works Information constrains any re-baselining of the programme so the PM’s can comply with the Employer’s requirement of reporting EVM to a fixed baseline.

1 Like

The easy answer to this is that the Contractor almost certainly can’t provide a realistic programme if there is change in the works requiring the programme to be altered to reflect that change. It would seem to me that the requirement to report earned value management against a fixed baseline is inappropriate and really misses the point of an EVM system.

The term “re-baselining” isn’t one I would have used in this context as the programme is not being re-baselined but developed through the project, to my mind these are quite different concepts.

The wording of the “constraint” will be important as it may not be contractually binding (not being a term from the core clauses or options, a requirement in the contract data or falling with the definition of Works Information). This can obviously only be untangled with sight of the wording used.

The baseline is actually independent of the activities themselves so is irrelevant in terms being able to submit a realistic programme. You can still revise your remaining works and show a realistic revised programme as to how you plan to execute the remaining works. The baseline is all about what you are comparing the current programme to. In NEC3 terms, the last Accepted Programme is in effect the baseline that you compare any future programme against.

Earned Value Management is a tool that can be used in parallel with the NEC3 contract and just requires you to use a different baseline to assess value against. If you have the first six months programmes accepted, then rev 07 will be compared to your last Accepted Programme in terms of assessing change and compensation events, but compared to rev 01 in terms of EVM/EVA. The principle is not a problem, although having an old baseline to assess EVM against becomes more problematic as time moves on.