Value of Work Performed (VOWD) is a business term that can refer to different metrics depending on the type of business. In project management, it refers to the value of all services and goods rendered to the company, while in construction it refers to the percentage of work completed. For bulk materials and heavy equipment, it refers to the percentage of materials or weight delivered. VOWD helps project managers manage project costs.
Value of Work Performed (VOWD) is a business term that refers to different value metrics, based on the type of business. In project management, the value of work performed refers to the value of all services and goods rendered to the company and helps control project costs. In engineering and construction, it refers to the percentage of work completed on a project. In companies that deal with bulk materials, VOWD refers to the amount of material delivered to the construction site. For purchased equipment, mainly heavy equipment, this refers to the percentage of weight that has been delivered.
When a project manager talks about the value of the work performed, they are talking about the amount of money the items or services received cost the company. For example, if your company receives $100 in United States Dollars (USD) for an item and the shipping service for those items is another $20, your total VOWD is $120 USD. This also applies if the company has not yet paid for the services and the company has not yet received an invoice. This metric helps project managers manage project costs.
In construction, the value of work done refers to the total amount of progress towards the completion of the project. This metric is not measured in total hours worked, but in the percentage of work completed. For example, if two tasks were completed, each representing 6 percent of the total project respectively, then the VOWD is 12 percent. When the VOWD reaches 100, the project is finished.
Bulk materials are received by many companies and are used for processing or creating other products. When you have a project that requires many different bulk materials, the value of work done is the percentage of total materials received for the entire project, until all items are purchased. If 10 percent of the materials have been delivered to the shipyard or manufacturing plant, the VOWD is 10 percent.
Sourcing heavy equipment is similar to bulk materials meaning the value of work performed, except that the percentage refers to the total weight of all equipment, not the amount of equipment present. For example, if 20 items are needed and one item is delivered, the VOWD isn’t necessarily 5 percent, as it would be with bulk materials. If the item weight is 35 percent of the gross weight, the VOWD is 35.
Protect your devices with Threat Protection by NordVPN
