Value of work done (VOWD) is a business term that refers to several different value metrics, based on the business type. In project management, value of work done refers to the value of all services and goods rendered to the business, and it helps control project cost. In engineering and construction, it refers to the percentage of work completed on a project. In businesses dealing with bulk materials, VOWD refers to the amount of material delivered to the job site. For procured equipment, mostly heavy equipment, this refers to the percentage of weight that has been delivered.
When a project manager talks about value of work done, he or she is talking about how much money the items or services received have cost the company. For example, if the company receives $100 US Dollars (USD) worth of an item and the shipping service for those items is another $20 USD, the total VOWD is $120 USD. This is applied even if the company has not paid for the services yet and the company has not yet received an invoice. This metric helps project managers manage the project’s cost.
In construction, value of work done refers to the total amount of progress toward the project’s completion. This metric is not measured in total work hours, but in the percentage of work complete. For example, if two tasks have been completed, each one representing 6 percent of the total project, respectively, then the VOWD is 12 percent. When the VOWD reaches 100, then the project is finished.
Bulk materials are received by many companies and are used for processing or for creating other products. When a project is in place that requires many different bulk materials, the value of work done is the total percentage of materials received for the entire project, until all items are procured. If 10 percent of the materials have been delivered to the job site or manufacturing plant, then the VOWD is 10 percent.
The procurement of heavy equipment is similar to the bulk materials meaning of value of work done, except the percentage refers to the total weight of all the equipment, not the amount of equipment present. For example, if 20 items are needed and one item is delivered, the VOWD is not necessarily 5 percent, as it would be with bulk materials. If the weight of that item accounts for 35 percent of the overall weight, then the VOWD is 35.