Integrating risk management and earned value framework to detect early warning signs – Case study

The construction industry, renowned for its inherent risks, faces challenges stemming from diverse factors such as conflicting stakeholder objectives and environmental fluctuations. To address these uncertainties, Risk Management (RM) procedures serve as preemptive measures to alleviate the impact of potential risks. This research introduces an integration framework that amalgamates principles of risk management with the earned value technique, specifically tailored for managing mega infrastructure projects in Kuwait. Through an expert panel, key risk elements are identified, forming the basis for a comprehensive risk mitigation strategy. The application of the earned value technique throughout the project construction phase enables real-time monitoring and prediction of project performance indicators. The periodic integration of RM principles and earned value applications provides valuable insights into project management, emphasizing the necessity of completing all risk management steps, garnering top management support for innovative techniques, and integrating project staff into management processes. This study underscores the significance of employing risk management and earned value techniques as crucial indicators for monitoring and enhancing project performance.