Project on Value Management in the Construction Industry
Added on 2020-05-28
7 Pages946 Words134 Views
Business Development
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Running head: CONSTRUCTION MANAGEMENT Construction ManagementName of StudentInstitution Affiliation
Running head: CONSTRUCTION MANAGEMENT Introduction.Value management refers to an approach which is term-based used to define the objectives of a client while ensuring the best value and whose life solutions are important in satisfying those objectives (Alexander, 2013). To obtain maximum benefit, it is advisable to startcarrying out value management at the very initial stages of the project.This process of value management involves the engineering of value, which entails a systematic approach to making sure that given functions are satisfied to the best standard with little cost (Kelly et al, 2014). Similarly, value management process can be used to recover the costs that may diverge from the project that may be seen earlier when the design reports are being written. Every procedure, concept, and practice must have been preconceived, actualized and put into practice at any one point in time or the other by a group of people or an individual in either a formal or an informal organization establishment or an industry. In this project, we will look at the value management in the construction industry.Methodology.‘This is a value management exercise of a construction site.This process of value engineering or value management exercise was initiated to help achieve the best standard at a relatively low cost.
Running head: CONSTRUCTION MANAGEMENT The overall cost of the project was the total amount of money needed to acquire and utilize the specified functions. The cost was given by the summation of such factors as labor, material, equipment, profits, and overheads and supervision. That isCost = labor + material + equipment + profit + overheads and supervision.Labor $3000000Material $11000000Equipment $2500000Profit $1500000Overheads and supervision $800000Cost = 3000000 + 11000000 + 2500000 + 1500000 + 800000 =$18800000On the other hand, worth of the project was the least cost of the specified functions required by the user. Its worth was calculated by comparing the functional equivalents of the project.Apart from value management, the following alternatives could be used instead.Green building design – it reduces the overreliance on the non-renewable resource, reduces environmental degradation. Green building design should be embraced due to its friendliness to the environment, ability to save money by reducing the expense of utilities
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