Problem:
It has been said that Earned Value Management (EVM) came about because the federal government often used "cost-plus" contractors with project organization. Cost-plus contracting allows the contractor to recover full project development costs plus accumulate profits from these contracts. Why would requiring contractor firms to employ Earned Value Management help the government hold the line against project cost overruns?
What are the main advantages of using EVM as a project control mechanism? What do you perceive as its disadvantage?