Our system calculates the Earned Value of the project in 3 different ways depending upon the billing method of the phases involved. Here are the three methodologies applied to five Billing Formats:

**Fixed Fee** – Percent Complete times the Fee Amount. Each phase of a project has a percentage complete value. This value is manually entered by the user - hopefully an experienced sage who understands the progress of the project. This value should represent what percentage of a given phase has been completed to satisfaction.

**Hourly** – Hours worked times the associated billing rate on the timeslip. With hourly phases, the system summarizes the values from timeslips.

**Hourly NTE** – Hours worked times the associated billing rate on the timeslip capped at the NTE limit.

**Cost Plus** – Hours worked times the hourly pay equivalent of the employee times an overhead factor and a profit factor.

**Cost Plus NTE** – Hours worked times the hourly pay equivalent of the employee times an overhead factor and a profit factor capped at the NTE limit.

For Hourly and Cost Plus phases the Earned Value automatically accrues as timeslips are created. With your Fix Fee phases, the Earn Value requires the project manager to update the percent complete for each phase.

Using the appropriate calculation, each phase has its individual Earned Value. These values are summarized to produce the Earned Value for the project.