Measuring the Actual Energy Cost Performance of Green Buildings: A Test of the Earned Value Management Approach

Luay N. Dwaikat * and Kherun N. Ali

Faculty of Built Environment, Universiti Teknologi Malaysia, 81310 Johor Bahru, Johor, Malaysia; b-kherun@utm.my

* Correspondence: luay.dwaikat@gmail.com; Tel.: +60-19-729-2609 or +970-598-100-395

Academic Editor: Nyuk Hien Wong

Received: 30 January 2016; Accepted: 2 March 2016; Published: 11 March 2016

Abstract: Reduced energy consumption is a key aspect of the green building. Nonetheless, research indicates that there is a performance gap between the predicted and the actual energy performance once buildings are occupied, which implies a cost deviation from the anticipated energy cost performance. However, the cost deviation also might result from lower or higher energy rates than expected. As an appropriate research methodology for existing theory testing, case study research strategy was adopted to empirically examine the earned value management (EVM) approach to measure the actual life cycle cost performance of energy in green buildings. With slight methodological and terminological adaptations, it is found that the EVM approach can be applied to conduct a holistic cost performance measurement of the actual energy consumption in green buildings. The strength of the earned value approach is that it allows for detecting whether the energy cost saving or over run results from lower or higher energy consumption, or from actual energy rate variations. The earned value approach allows for quantifying each cost variance independently, which is a significant aspect of actual energy cost performance measurement in green buildings.

Keywords: green buildings; energy life cycle cost; performance gap; performance measurement; earned value management (EVM)

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