Economical Regulating Strategies Based on Enhanced EVM Model in Electric Substation Construction Projects

Hongyan Xin (), Zhengdong Wan, Yan Huang and Jinsong Zhang
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Hongyan Xin: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510530, China
Zhengdong Wan: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510530, China
Yan Huang: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510530, China
Jinsong Zhang: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510530, China

Energies, 2025, vol. 18, issue 14, 1-14

Abstract: With the increasing demand for electricity in modern society, the scale of substation construction projects has greatly expanded, and the ever-increasing technical requirements have led to rising project costs year by year. Effective cost management not only enhances a company’s market competitiveness but also ensures the construction quality of projects. This paper addressed the issues of cost management in substation projects by exploring the application of unbalanced bidding, target costing, and improved earned value management (EVM) in cost control. By introducing quality indicators to improve traditional EVM, this study proposed a comprehensive evaluation model that considers cost, schedule, and quality to ensure a good construction performance of substations. Using LT 220 kV substation of Company A project as a case study, the paper analyzed specific measures of cost management in the bidding decision, preparation, and construction phases, verifying the feasibility and effectiveness of the improved model. The results indicated that the enhanced EVM can effectively improve cost control in substation projects, achieving an optimal balance among quality, schedule, and cost with significant practical application value.

Keywords: substation projects; cost management; earned value management; target costing; unbalanced bidding (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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