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