41 lines
1.1 KiB
Markdown
41 lines
1.1 KiB
Markdown
---
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id: 2025-11-21T10:11:00-0500
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title: 2025-11-21 10:11:??
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tags:
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- status/complete
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- topic/estimating
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- topic/organization
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daily: "[[2025-11-21]]"
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---
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# 2025-11-21 10:11:??
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## "Hours Burned vs. Hours Earned"
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A criticism of [[earned-value-management]] in [[construction]].
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> [!quote] [ELECTRI's Industry Benchmarking Tool - ELECTRI International](https://www.electri.org/research-overview/electris-industry-benchmarking-tool/)
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> ### Hours Burned vs. Hours Earned
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>
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> Definition:
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> Comparison between portion of project estimated hours complete
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> compared with the actual hours spent on the task.
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> This is the labor performance factor
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> (needs to reference the labor factor used at bid time for a full comparison).
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This is a terribly problematic metric.
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If a project went over its material budget
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despite standard rigorous oversight
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where would you first look,
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operations or estimating?
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In almost all cases the safer bet is estimating.
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Why should labor be different?
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Wherever there is budget variance
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there is a persistent tendency to blame construction
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before estimating.
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[[purpose-of-construction-estimating#The Myth of Estimate Accuracy]]
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