Value Management

International Journal of Project Management, 2012

The paper distinguishes between value management and value engineering on the basis of their underlying assumptions. The traditional approach to value engineering is analysed, and is found to reflect the optimizing paradigm of hard systems thinking. In contrast, the alternative approach offered by value management is based on the learning paradigm of soft systems thinking. While the objectives of value engineering are dominated by cost reduction, the purpose of value management is to develop a common understanding of the design problem and to identify explicitly an agreed statement of design objectives by the project stakeholders. smart value management is introduced as the means by which these ends can be achieved. It is further suggested that this approach enables project managers to exert an increased level of control over the early stages of building design. It also ensures that different interest groups within the client organization are actively involved in the design process, and that they thus ‘buy in’ to the decisions which are made.

2001

Value management is well established in construction. The method provides a structured, documentable consideration of project stakeholders to ensure that projects are required, framed to satisfy values and sufficiently supported by all stakeholders to ensure successful completion. A variety of construction-specific value management methods exist and many UK design management contractors offer the practice to clients as a structured method of considering the role of each project in adding value to clients' business activities. Value ...

International Journal of Project Management, 2007

Value management (VM) is presented as a methodological management style for enhancing value in projects. It draws together conceptual thinking on the project as a value chain with historical and international developments in value management and value engineering (VE). Lessons are distilled from the authors' and others published material and from their experience of conducting a diverse range of VM studies across the private and public sectors, at all project stages from inception to operation/facilities management, under all forms of procurement, and more recently as an underpinning in the development of a national asset strategy for the UK's Environment Agency and for improving property asset management across the central civil government estate for the UK's Office of Government Commerce. A series of study styles for conducting value management are presented with the potential to take VM to its next stage of development.

2012

Value Management (VM) is a proven methodology that provides a structured framework using supporting tools and techniques that facilitate effective decision-making in many types of projects, thus achieving ‘best value’ for clients. It offers an exceptionally robust approach to exploring the need and function of projects to be aligned with client’s objectives. The functional analysis and creativity phases of VM are crucial as it focused on utilising innovative thinking to understand the objectives of clients’ projects and provide value-adding solutions at the early discovery stages of projects. There is however a perception of VM as just being another cost-cutting tool, which has overshadowed the fundamental benefits of the method, therefore negating both influence and wider use in the construction industry. This paper describes findings from a series of case studies conducted at project and corporate levels of a current public funded infrastructure projects in Malaysia. The study aim...

Facilities, 2005

Briefing is the process of identifying and defining the client's requirements in the early design stage of a construction project. Previous research revealed that there are problems in the existing briefing practice. Recent investigations into the variables of briefing have led people to question whether the value management methodology can be applied in project briefing to improve the briefing practice. This paper describes a research project which seeks to establish a value management framework for project briefing to systematically identify and clarify client requirements, and represent these requirements precisely and explicitly to facilitate the design process. The research methodology and interim findings are presented in the paper. It is revealed that the theoretical foundation of the research supports the use of value management to the briefing process. Further validation of the proposed framework will be completed by conducting questionnaire survey and real-life case studies.

Value Management (VM) has been proven to provide a structured framework, together with other supporting tools and techniques, that facilitate effective decision-making in many types of projects, thus achieving ‘best value’ for clients. One of the major success factors of VM in achieving better project objectives for clients is through the provision of beneficial input by multi-disciplinary team members being involved in critical decision-making discussions during the early stage of construction projects. This paper describes a doctoral research proposal based on the application of VM in design and build construction projects, especially focussing on the design stage. The research aims to study the effects of implementing VM in design and build construction projects, in particular how well the methodology addresses issues related to cost overruns resulting from poor coordination and overlooking of critical constructability issues amongst team members in construction projects in Malaysia. It is proposed that through contractors’ early involvement during the design stage, combined with the use of the VM methodology, particularly as a decision-making tool, better optimization of construction cost can be achieved, thus promoting more efficient and effective constructability. The main methods used in this research involve a thorough literature study, semi-structured interviews, and a survey of major stakeholders, a detailed case study and a VM workshop and focus group discussions involving construction professionals in order to explore and possibly develop a framework and a specific methodology for the facilitating successful application of VM within design and build construction projects.

Construction Innovation: Information, Process, Management, 2012

This paper reviews the development of value management (VM) over the last few decades and proposes ways for future development. Methodology/approach: A qualitative research methodology was adopted which involved a comprehensive review of relevant literature leading to a better understanding of the history and development of VM. A way forward is suggested for the future development of VM. Findings: The research revealed that sustainable development is an area which has great potential for the application of a VM methodology in the construction industry in order to ensure sustainable design and development is leveraged during the life span of construction projects. Originality/value: The research work described in this paper encourages researchers and practitioners to integrate VM and sustainable development. It enables the VM community to have a better understanding of applying VM techniques to address 'green building' issues and the potential of applying VM to promote sustainability in buildings.

World Scientific News, 2016

Value management is a process whereby the project is evaluated and scrutinised to obtain maximum value for money by following a prescribed methodology. It focuses on the value, rather than cost, in relation to the function of the element of the project. However, value relates to what an element does. The key benefit of VM is the financial benefits to the client; other benefits include a clearer brief, improved communication, use of local materials etc. However, there are barriers to its application such as inadequate training and education, the unwillingness to entertain new ideas, lack of regulatory framework etc. Also, the following drivers of VM approach were identified: establishment of a regulatory framework, client's awareness, establishment of a group support system on VM etc. This paper considers value management from a functional value perspective and argues for greater recognition for it to form an integral part of projects.

2006

A "value agenda" has arisen in the UK's cultural development in recent years. In the construction sector, a desire to make worthwhile building investments that are socially beneficial as well as commercially successful has become commonplace. This value agenda has become embodied in government policy which has, in turn, shaped the investment strategies of public bodies. Construction projects are becoming concerned with engaging directly with stakeholders to understand and reflect their attitudes, opinions and values in the final solution. In the private sector, the value agenda has stimulated business and societal debate to the stage where fulfilment of stakeholders' expectations is seen as a precursor to commercial success. It is increasingly held that people seek to use buildings and facilities that reflect their values and which, therefore, they feel at ease with. In response to the above, VALiD (Value in Design) has been developed as a flexible framework that helps construction project teams explore and understand stakeholders' values as a precursor to delivering value. Within this framework, VALiD defines value as the relationship of stakeholder benefits sought, sacrifices accepted, and resources expended. It is defined individually for every stakeholder in recognition that each has different underlying values and, therefore, a different perception of value. The use of VALiD to define project objectives and assess value delivery performance is described. The paper presents a summary of construction organisations' response to this treatment of value, including the status of its development through continuing industry and academic research in the UK. This paper presents selected findings from an applied research project undertaken by a collaborative team of academic and industrial organisations to establish theoretically-sound, but practical and usable methods of addressing the above issues. The "Managing Value Delivery in Design" study was undertaken at Loughborough University, Loughborough, UK. The work was conducted in the Innovative Manufacturing and Construction Research Centre (IMCRC) and was funded by the EPSRC and the DTI under grant numbers GR/R64490/01 and 39/12/16 cc2323 respectively. The authors acknowledge the extensive support of the Department of Civil and