Managing the Development of Building Projects for Better Results

First published in 1981, updated for web presentation, Dec. 2000

Introduction | Principal Parties | Project Plan | Improving Performance
Project Life Cycle | Bar Chart Schedule | Manpower Loading Data
Information Explosion | Final Cost | Design Stages | Cost Effectiveness
Choices | Construction Costing | Value Management | Design Review
Cost of Building Ownership | Practice and Value Management | Summary

Applying Value Management

As stated earlier, significant effort by the management team should be exercised during the planning phases and working drawings stage to maintain control of the project's scope, quality, time and cost. This should at least take the form of specific and contractually required design reviews, the timing of which is also suggested in Figure 5. These reviews, and earlier or additional ones if need be, can best take the form of a project management technique known as value engineering, value analysis or Value Management.

Value Management, a recognized service in the United States, is commonly defined as "An organized approach whose objective is to optimize the total cost and/or performance of a facility or system."[4] The methodology of this approach is to first identify the areas of high cost, identify their essential purposes, and to systematically develop alternatives that perform the required functions at the same quality but at lower cost.

Note that this does not necessarily mean cheapest or lowest first cost, because account should be taken of the total life cycle cost of the building. That is, the overall cost to design, construct, operate, maintain and dispose of or rehabilitate the facility over its entire life cycle.

Construction Costing and the 1/10th of 1% Rule  Construction Costing and the 1/10th of 1% Rule

4. Dell'Isola, A. J. "Value Engineering in Construction." Van Nostrand Reinhold Co, 1979.

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