Budget Overruns and Schedule Delays: A Comprehensive Analysis of Earned Value Management of New York City Capital Projects

The research investigated the occurrences of budget overruns and schedule delays in New York City capital projects through Earned Value Management (EVM). This comprehensive analysis began with a review of existing literature highlighting the significance of EVM as a critical tool for monitoring project performance and controlling costs. The research identified the pervasive problem of cost overruns and schedule delays that plague municipal projects, raising essential questions about the effectiveness of current management practices and EVM applications. Non-experimental and predictive correlations are the research designs used in this research. The research questions (RQs) employed Pearson and Spearman correlations, as well as linear regression statistical analyses, to investigate the relationships and influences between the EVM metrics. RQ1 examines the relationship between EV and AC, while RQ2 focuses on the prediction of EAC by BAC. The findings revealed a statistically significant relationship for RQ 1. At the same time, RQ 2 showed that BAC as a predictor reduces prediction error by 90.6% and can be used to make predictions of EAC through the regression equation. This implies that the BAC variable strongly predicts EAC with fewer errors. Future research should build on these foundations by investigating causality, refining predictive models, and assessing how these findings can be applied to other projects. These are crucial for policymakers, project managers, and stakeholders, as improved EVM practices will enhance accountability and efficiency in the use of public funds, ultimately leading to more successful project outcomes in urban development initiatives.