The Earned Value: Cost Performance Index (CPI) is a key metric for monitoring cost efficiency in property development finance UK projects. Calculated by dividing the earned value (EV) by the actual cost (AC), CPI shows whether a development is operating within budget. A CPI above 1 indicates cost savings, while below 1 signals overspending. It integrates with earned value management (EVM) to provide a clear picture of financial performance across construction phases, cash flow, and operational efficiency. Developers and financiers use CPI to make informed decisions, adjust resource allocation, and optimise project profitability within property development finance structures.
This sits beneath Programme Monitoring & Compliance, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Viability Review Frequency, as both are closely related measures used to assess similar aspects of performance or risk.
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