Value Management of Construction Projects

Value Management of Construction Projects

Value management is the name given to a process in which the functional
benefits of a project are made explicit and appraised consistent with a value
system determined by the client.
This definition applies to all types of projects irrespective of which sector they
come from. For example, the project could be the design and manufacture of a
product, the design and construction of a building or infrastructure product, the
re-evaluation of an organisational process or the provision of a new or improved
service in banking, insurance or public services such as education or health. The
factor that makes value management possible is the identification of the project.
The client for the project will implicitly or explicitly establish a value system for
the project. `The client' in the context of this definition and for the remainder of
this book is the person, persons or organisation responsible for the inception of
the project and for its eventual adoption into the client's mainstream business.
This book is focused on construction; however, much of the thinking,
philosophy, systems, tools and techniques are as applicable to projects in other
Maximum value as defined by Burt1 is obtained from a required level of
quality at least cost, the highest level of quality for a given cost or from an
optimum compromise between the two. This is a useful definition because it
highlights the relationship between value, quality and cost. In this book the
definition of value is a relationship between time, cost and the variables that
determine the quality the client seeks from the finished project.

In writing this book, the authors have brought together and synthesised the
background, international developments, benchmarking and action research in
value management to provide a comprehensive package of theory and practice.
The book is overtly concerned with value management, examining function
analysis and team dynamics and also proposing a method for determining the
client's value system and quality criteria. The book examines different value
management study styles and proposes solutions for various activities at different
stages of projects. The book does not probe into the areas of creativity such as
those described by De Bono or TRIZ or the fields of operational research and
specifically operational hierarchies, nor does it address the whole subject area of
group decision support. All these the authors leave to other academic colleagues.
The objectives of the book are to:
& Interpret the results of recent research and specifically the authors' own
research into the international benchmarking of value management.
& Record accurately developments in value thinking during past decades,
addressing the nature of value, transforming it into definitions and also discussing
its alignment with total quality management and performance
& Examine the complexity of value systems that must be addressed in any VM
study and specifically the project value chain and value thread.
& Present a reasoned argument for the development of the client's value system
integrating the components of value, cost, time and quality.
& Present function analysis.
Present function analysis.
& Examine teams, team behaviours and facilitation and to point up practical
issues when facilitating value management teams.
& Describe in sufficient detail for practical use a series of VM study styles, tools
and techniques.

& Describe an enhanced VM process, argued


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