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Value Management of Construction Projects, 2nd Edition

Book Description

Value Management is a philosophy, set of principles and a structured management methodology for improving organisational decision-making and value-for-money. The second edition builds on the success of the first edition by extending the integrated value philosophy, methodology and tool kit to describe the application of Value Management to the areas of service delivery, asset management, and, Programmes, in addition to Projects, products and processes. Value Management is a well-established methodology in the international construction industry, and in the UK has been endorsed as good practice in a range of government sponsored reports.

In this book the authors have addressed the practical opportunities and difficulties of Value Management by synthesising the background, international developments, benchmarking and their own extensive consultancy and action research experience in Value Management to provide a comprehensive package of theory and practice. The second edition retains the structure of the first edition, covering methods and practices, frameworks of value and the future of value management. It has been thoroughly updated, and a number of new chapters added to encapsulate further extensions to current theory and practice. In particular, the new edition responds to:

  • A range of recent UK industry and government publications; and most notably BS EN 16271:2012 - Value management: Functional expression of the need and functional performance specification; the imminent update of BS EN 12973:2000 Value Management; BS EN 1325 Value Management - Vocabulary, Terms and definitions; the changes to "Value for Europe" governing the training and certification of Value Management in European Union countries; the UK Government's Management of Value (MoV) initiative, together with other leading reports, international guidance and standards on Value Management.

  • Research in Value Management undertaken since publication of the first edition.

  • Changes in Value Management practice particularly in Programmes and Projects.

  • Developments in the theory of value, principally value for money measures, whole life value option appraisal, and benefits realisation.

  • Initiatives in asset management initiatives covering the management of physical infrastructure, for example the recent launch of a suite of three standards under the generic title of BS ISO 55000: 2014 Asset Management, and its predecessor BSI PAS55 2008 "Asset Management: Specification For The Optimized Management Of Physical Assets"

  • The second edition contains a dedicated chapter of exemplar case studies drawn from the authors' experience, selected to demonstrate the new areas of theory and practice. An Appendix includes an extensive set of tools and techniques of use in Value Management practice.

    Construction clients, including those in both the public and private sectors, and professionals such as construction cost consultants, quantity surveyors, architects, asset managers, construction engineers, and construction managers will all find Value Management of Construction Projects to be essential reading. It will also be of interest to researchers and students on construction related courses in Higher Education - particularly those at final year undergraduate and at Masters level.

    Table of Contents

    1. Cover
    2. Title Page
    3. Copyright
    4. Preface
    5. Glossary
    6. Part 1: Introduction and Evolution of Value Management
      1. Chapter 1: Introduction
        1. 1.1 The Aims and Objectives of the Book
        2. 1.2 Developments in UK Construction
        3. 1.3 Developments in Value Management
        4. 1.4 The Structure of the Second Edition
        5. References
      2. Chapter 2: Evolution of Value Engineering and Value Management
        1. 2.1 Introduction
        2. 2.2 Historical Background
        3. 2.3 Definitions, Terminology and Practice – Phase 1: 1947 to 1963
        4. 2.4 Definitions, Terminology and Practice – Phase 2: 1963 to 1989
        5. 2.5 Definitions, Terminology and Practice – Phase 3: 1989 to 2014
        6. 2.6 The Project, Portfolio or Programme of Projects
        7. 2.7 The 1998 International Benchmarking Study of VM and VE
        8. 2.8 Standards and Procurement Guidance
        9. 2.9 International Research into Value Management
        10. 2.10 Implications for Value Management and Value Studies
        11. 2.11 Conclusions
        12. References
    7. Part 2: The Anatomy of a Value Study
      1. Chapter 3: Value Study Styles
        1. 3.1 Introduction
        2. 3.2 The Inception of a Project
        3. 3.3 The Specification and Procurement of a Value Study
        4. 3.4 Value Studies within the Project Management Process
        5. 3.5 The Three Generic Phases of a Value Study
        6. 3.6 Study Styles, Processes and Deliverables
        7. 3.7 Project Development Tracks
        8. 3.8 Value Study Type 1: Strategic Briefing (Project Planning and Business Definition)
        9. 3.9 Value Study Type 2: Project Briefing (The Technical Specification)
        10. 3.10 Value Study Type 3: Concept Design (The Technical Solution)
        11. 3.11 Value Study: Charette
        12. 3.12 Value Studies 4 and 5: Value Engineering
        13. 3.13 Other Study Styles
        14. 3.14 Case Study
        15. 3.15 Conclusion
        16. References
      2. Chapter 4: Function Analysis
        1. 4.1 Introduction
        2. 4.2 Discussion of Function as a Concept
        3. 4.3 Strategic Function Analysis – Information Discovery and Synthesis
        4. 4.4 Strategies, Programmes and Projects
        5. 4.5 Strategic Function Analysis – Function Diagramming
        6. 4.6 Project Function Analysis – Function Diagramming
        7. 4.7 Function Space Diagramming
        8. 4.8 Elemental Cost Planning and Elemental Cost Control
        9. 4.9 Element Function Analysis
        10. 4.10 Managing Element Clusters
        11. 4.11 Evaluating Function
        12. 4.12 Conclusion
        13. References
      3. Chapter 5: Managing Value Study Teams
        1. 5.1 Introduction
        2. 5.2 The Value Study Leader
        3. 5.3 Groups, Teams and Team Dynamics
        4. 5.4 Implications for Team Management in Value Studies
        5. 5.5 Value Workshop Management Skills
        6. 5.6 Conclusions and Lessons from Practice
        7. References
      4. Chapter 6: Innovation, Implementation and Benefits Realisation
        1. 6.1 Introduction
        2. 6.2 Innovation
        3. 6.3 Evaluation and Development
        4. 6.4 Implementation
        5. 6.5 Benefits Realisation
        6. 6.6 Conclusion
        7. References
      5. Chapter 7: Case Studies
        1. 7.1 Case Studies
        2. 7.2 Case Study 1 – Headquarters for a Financial Institution
        3. 7.3 Case Study 2 – Replacement of Silo Storage and Process Plant in Food Manufacturing Facility
        4. 7.4 Case Study 3 – Rail Infrastructure Programme
        5. 7.5 Case Study 4 – Magistrates Court Project
        6. 7.6 Case Study 5 – College Campus Library Project
        7. 7.7 Case Study 6 – Material Production Facility Expansion Project
        8. 7.8 Case Study 7 – Social Housing Project
        9. 7.9 Case Study 8 - Crown Court Project
        10. 7.10 Project Level: An Overview of Case Studies 1 to 8
        11. 7.11 Case Study 9 – Organisational Change
        12. 7.12 The Lessons Learnt from the Studies
        13. References
    8. Part 3: Whole-Life Business Value
      1. Chapter 8: Value Management and Asset Management
        1. 8.1 Introduction
        2. 8.2 The Importance of Asset Management as a Discipline
        3. 8.3 Defining and Positioning Asset Management
        4. 8.4 The characteristics of Asset Management
        5. 8.5 Physical Assets and Value for Money
        6. 8.6 Value Management and Asset Management Case Studies
        7. 8.7 Conclusions
        8. References
      2. Chapter 9: Managing Value in Portfolios, Programmes and Projects
        1. 9.1 Introduction
        2. 9.2 Strategic Management
        3. 9.3 Portfolios, Programmes and Projects
        4. 9.4 Value-Based Methodologies in the P3 Environment
        5. 9.5 A Value Case Study: Prioritising a Capital Investment Programme for an Asset Owner-User
        6. 9.6 Conclusions
        7. References
      3. Chapter 10: Option Appraisal, Risk Management and Whole Life Costing
        1. 10.1 Introduction
        2. 10.2 Objectives of TGB and Option Appraisal
        3. 10.3 Risk Management
        4. 10.4 Whole Life Cost
        5. 10.5 Case study: Forming a New Academic Department from the Amalgamation of Identical Departments of Two Academic Institutions
        6. 10.6 Conclusion
        7. References
    9. Part 4: Developments in Value Thinking
      1. Chapter 11: Discerning Value
        1. 11.1 Introduction
        2. 11.2 Part 1 – Background to the Value Debate
        3. 11.3 Part 2 – Social and Psychological Dimensions of Value
        4. 11.4 Part 3 – Quality Debated
        5. 11.5 Part 4 – Principles for Eliciting a Value System
        6. 11.6 Part 5 – Value Systems in a Construction Environment
        7. 11.7 Part 6 – Practical Considerations and Ethical Issues in the Use of a Value System in a Construction Value Study
        8. 11.8 Conclusion
        9. References
      2. Chapter 12: Whole Life Value
        1. 12.1 Introduction
        2. 12.2 A Discussion of the Methodological Approaches to WLV
        3. 12.3 Case Study – Illustration of a Method for Developing and Using the Whole Life Value Conceptual Model
        4. 12.4 Conclusion
        5. References
      3. Chapter 13: The Theory, Practice and Future of VM: A Revisionist Interpretation
        1. 13.1 Introduction
        2. 13.2 Demand and Supply: the Practice of VM
        3. 13.3 Theoretical Underpinnings
        4. 13.4 Future Directions: Theoretical and Practice Developments
        5. 13.5 VM Practice and Professional Territoriality
        6. 13.6 The Future of VM: Summary and Conclusions
        7. References
    10. Appendix: Toolbox
      1. A.1 Introduction
      2. A.2 ACID Test – Selecting the Team
      3. A.3 Action Plan
      4. A.4 Adjacency Matrix
      5. A.5 Audit – See Also Benefits Realisation
      6. A.6 Benchmarking
      7. A.7 Benefits Realisation
      8. A.8 Brainstorming – Creativity
      9. A.9 Briefing (by Investigation or by Facilitation)
      10. A.10 Checklist
      11. A.11 Client's Value System and Client's Project Value Systemx matrix
      12. A.12 Delphi
      13. A.13 Design to Cost – BS EN 12973:2000 Value Management
      14. A.14 Document Analysis
      15. A.15 Driver Analysis
      16. A.16 Element Function Analysis
      17. A.17 Evaluation and Development
      18. A.18 Facilities Walkthrough
      19. A.19 Failure Mode and Effects Analysis – BS EN 12973:2000 Value Management
      20. A.20 FAST (Function Analysis System Technique) Diagramming/Function Logic Diagram
      21. A.21 Functional Performance Specification – BS EN 12973:2000 Value Management
      22. A.22 Function Space Analysis
      23. A.23 Gap Analysis
      24. A.24 Goal and Systems Modelling
      25. A.25 Idea Reduction – Judgement (see Also Weighting and Scoring)
      26. A.26 Impact Mapping
      27. A.27 Interviews
      28. A.28 Issues Analysis
      29. A.29 Kano
      30. A.30 Lever of Value
      31. A.31 Life-Cycle Costing
      32. A.32 Likert
      33. A.33 Presentation
      34. A.34 Project Value System
      35. A.35 Post-Occupancy Evaluation
      36. A.36 Process Flowcharting
      37. A.37 Project Execution Plan (PEP)
      38. A.38 Quality Function Deployment
      39. A.39 Questionnaire
      40. A.40 REDReSS
      41. A.41 Risk Analysis and Management
      42. A.42 SMART Methodology
      43. A.43 Space Adjacency
      44. A.44 Space Diagramming – User Pathways
      45. A.45 Space Requirement User Function
      46. A.46 Stakeholder Analysis/Management/Mapping
      47. A.47 Strengths, Opportunities, Weaknesses and Threats (SWOT)
      48. A.48 Site Tour
      49. A.49 Timeline
      50. A.50 Time, Cost and Quality
      51. A.51 User Flow Diagramming
      52. A.52 Weighting and Scoring – (see Also Idea Reduction)
      53. A.53 Whole-Life Costing
      54. References
    11. Index
    12. End User License Agreement