Value Management: A Systematic Approach for Construction Projects

Value Management 1
VALUE MANAGEMENT
By (Name)
Course
Professor’s name
University name
City, State
Date of submission

Value Management 2
Contents
Introduction................................................................................................................................3
Project brief..............................................................................................................................3
Problem analysis.......................................................................................................................3
Problem statement..................................................................................................................3
Proposed solution...................................................................................................................3
Alternative solutions considered............................................................................................4
Value planning....................................................................................................................4
Value engineering...............................................................................................................5
Value analysis.....................................................................................................................5
Detailed development of the solution: VM process...............................................................5
Information stage................................................................................................................5
Objectives stage..................................................................................................................6
Function analysis stage.......................................................................................................8
Creativity stage.................................................................................................................11
Evaluation stage................................................................................................................11
Development stage............................................................................................................12
Reporting and recommendation stage...............................................................................12
Final proposal:........................................................................................................................12
Evaluation of the solution.....................................................................................................12
Analysis of benefits..............................................................................................................13
Analysis of risks...................................................................................................................13
References...............................................................................................................................15
Appendices..............................................................................................................................17

Value Management 3
Introduction
Value management may be described as a systematic, organised, flexible and team-oriented
method for assessing the relationship between function, cost and worth. Value management is
based in the idea that although there is are inherent unnecessary costs incurred in
construction, substantial cost savings can be achieved by identifying and eliminating the
unnecessary costs (Cooper, 2017).
Value management encompasses all parts of the construction project from feasibility studies,
financing and costing plan, design and construction and project operation.
Key words
Value management, value engineering, project team, synergy
Project brief
The application area for the proposed project will be a proposed apartment. The apartments
will be located at The Commons, Brunswick 3056, has an estimated cost of 38 million
dollars, will take approximately 18 months to complete. The ground coverage is 489.1 m2
while the total floor area is 2445.5 m2. The proposed apartments are currently on tendering
stage and in terms of value management they are at value planning (VP) stage.
Problem analysis
Problem statement
The main problem confronted by the project team, is the methods and approaches that will be
used to achieve the construction of the proposed apartments. It is very common that there will
be a variety of good ideas fronted by the different professionals in the project team. Without a
proper framework of assessing, brainstorming and synergising those ideas, the project team
may face various challenges during construction. These challenges include; the project
manger may choose to implement one half-baked idea at the expense of other ideas, good
ideas that may improve project implementation may be ignored, there may be repetition of
work and omission of some work due to poorly defined objectives (Hitomi, 2017). These
challenges will derail the project, with time and cost implications.
Proposed solution
Value management is an appropriate solution that achieves overall efficiency of the project
delivery by providing efficient systems and structures that maintain quality of the project.
Value management provides a clearly defined path for the construction of the proposed
apartment block, which incorporates all the needs and ideas of the professionals in the project

Value Management 4
team and the desired outcome of the client (Matejka & Berka, 2016). In addition, value
management encourages creativity among the project stakeholders, allowing synergy among
all the construction professionals thus resulting in better concepts, outcomes and project
delivery. Other benefits accrued from applying value management in the project include:
 A clearly defined understanding of the desired outcomes and value of the client and
the proposed building users
 A structure that maintains balance between the project team’s desires and needs.
 The development of a clearly defined brief that reflects the expectations of the client,
project team and the proposed building users. This is achieved by better
communication between all the stakeholders.
 Offers a structure that ensures the project is delivered in the most efficient way
possible
 Offers a structure of measuring value at each stage of construction and project
management.
Alternative solutions considered
The following were alternative solutions that were considered to achieve efficiency and
quality in the project delivery:
 Value planning
 Value engineering
 Value analysis
Although these solutions would improve efficiency, maximise quality and value for money,
they do not cover all the aspects of the entire duration of project delivery (Mir & Pinnington,
2014).
Value planning
Value planning refers to value techniques that are used in the conceptual and planning stages
of the project. These techniques are used to obtain clarity, hierarchy and full definition of the
clients’ desires, needs and outcomes. Value planning is often used when developing the brief
of the project (Ashworth, et al., 2013).
Methodology of value planning
The first stage of value planning involves the client and his team; they carry out a
brainstorming session to identify their expected desires for the project and their