Value in building design and construction - Revision history

Designing Buildings at 08:14, 27 April 2021

2021-04-27T08:14:23Z

← Older revision		Revision as of 08:14, 27 April 2021
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	* Value management techniques.		* Value management techniques.
	* Value of a place.		* Value of a place.
		+	* Value outcome.
	* Value planning.		* Value planning.
	* Valuer.		* Valuer.

Designing Buildings at 10:26, 27 November 2020

2020-11-27T10:26:01Z

← Older revision		Revision as of 10:26, 27 November 2020
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	See also: Value of a place.		See also: Value of a place.
		+
		+	Note:
		+
		+	[https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent The Green Book, Central Government Guidance On Appraisal And Evaluation], Published by HM Treasury in 2020, suggests: ‘Value for Money – (VfM) is a balanced judgment based on the Benefit Cost Ratio which brings together social costs and benefits including public sector costs over the entire life of a proposal, together with decisively significant unquantified deliverables, and unmonetised risks and uncertainties, to deliver a proposals SMART objectives. The judgement is made in the context of the proposals role, in supporting government policies and strategies of which it is a part, and its fit with wider public policies.’

	= About this article =		= About this article =

Designing Buildings at 08:55, 25 November 2020

2020-11-25T08:55:36Z

← Older revision		Revision as of 08:55, 25 November 2020
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	* Value of a place.		* Value of a place.
	* Value planning.		* Value planning.
		+	* Valuer.
	* Whole life costs.		* Whole life costs.
	* Whole life value.		* Whole life value.

Designing Buildings at 10:42, 2 November 2020

2020-11-02T10:42:46Z

← Older revision		Revision as of 10:42, 2 November 2020
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	* Public sector comparator.		* Public sector comparator.
	* RICS.		* RICS.
		+	* Social value.
		+	* Switching value.
	* Tender price appraisal.		* Tender price appraisal.
	* Valuation.		* Valuation.

Designing Buildings at 10:41, 2 September 2020

2020-09-02T10:41:17Z

← Older revision		Revision as of 10:41, 2 September 2020
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	* Hamersley, H (2002) Value Management in Construction.		* Hamersley, H (2002) Value Management in Construction.

−	[[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Cost_/_business_planning]]

Designing Buildings at 11:19, 15 July 2020

2020-07-15T11:19:48Z

← Older revision		Revision as of 11:19, 15 July 2020
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	NB: As a general principal, a score of 850 can be taken as excellent; 750 to be good; 500 implies room for improvement and less than 500 requires improvement.		NB: As a general principal, a score of 850 can be taken as excellent; 750 to be good; 500 implies room for improvement and less than 500 requires improvement.

−	~~-----~~	+	See also: Value of a place.
		+
	= About this article =		= About this article =

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	* Value management.		* Value management.
	* Value management techniques.		* Value management techniques.
		+	* Value of a place.
	* Value planning.		* Value planning.
	* Whole life costs.		* Whole life costs.

Designing Buildings at 15:18, 3 April 2020

2020-04-03T15:18:11Z

← Older revision		Revision as of 15:18, 3 April 2020
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	* Budget.		* Budget.
	* Cost plans.		* Cost plans.
		+	* Environmental value concepts.
	* Heritage value.		* Heritage value.
	* Key performance indicators.		* Key performance indicators.
−	* Post project review.
	* Public sector comparator.		* Public sector comparator.
−	* ~~Stakeholders~~.	+	* RICS.
	* Tender price appraisal.		* Tender price appraisal.
		+	* Valuation.
	* Value added.		* Value added.
	* Value engineering.		* Value engineering.

Designing Buildings at 10:48, 25 February 2020

2020-02-25T10:48:19Z

← Older revision		Revision as of 10:48, 25 February 2020
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	* Public sector comparator.		* Public sector comparator.
	* Stakeholders.		* Stakeholders.
		+	* Tender price appraisal.
	* Value added.		* Value added.
	* Value engineering.		* Value engineering.
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	* Whole life value.		* Whole life value.

−	=== External references ===	+	= External references =

	* Kelly, J; Male, S and D Graham (2004) Value Management of Construction Projects, Blackwell Science.		* Kelly, J; Male, S and D Graham (2004) Value Management of Construction Projects, Blackwell Science.

Designing Buildings at 09:32, 21 December 2019

2019-12-21T09:32:01Z

← Older revision		Revision as of 09:32, 21 December 2019
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	* Budget.		* Budget.
	* Cost plans.		* Cost plans.
		+	* Heritage value.
	* Key performance indicators.		* Key performance indicators.
	* Post project review.		* Post project review.

Editor at 11:26, 17 December 2019

2019-12-17T11:26:12Z

← Older revision		Revision as of 11:26, 17 December 2019
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	Thus, value can be increased by improved function or reduced whole life cost. Value for Money (VfM), as a concept, relates to the optimum balance between the benefits expected of a project and the resources expended in its delivery.		Thus, value can be increased by improved function or reduced whole life cost. Value for Money (VfM), as a concept, relates to the optimum balance between the benefits expected of a project and the resources expended in its delivery.

−	The three most common terms associated with the VfM concept are value management, value engineering and value analysis. ~~Whilst~~ they are all keys to the VfM concept, there are functional and systemic differences between them:	+	The three most common terms associated with the VfM concept are value management, value engineering and value analysis. While they are all keys to the VfM concept, there are functional and systemic differences between them:

	* Value Management (VM) is about getting the right project.		* Value Management (VM) is about getting the right project.
	* Value Engineering (VE) is done to get the project right.		* Value Engineering (VE) is done to get the project right.
−	* Value Analysis (VA) relates to the improvement of a construction, manufacturing or management process and also to a post project review to establish value achievement.	+	* Value Analysis (VA) relates to the improvement of a construction, manufacturing or management process and also to a post-project review to establish value achievement.

	The British/European Standards define VM as 'a style of management, particularly dedicated to mobilise people, develop skills and promote synergies and innovation, with the aim of maximising the overall performance of an organisation' (BS EN 12973: 2000).		The British/European Standards define VM as 'a style of management, particularly dedicated to mobilise people, develop skills and promote synergies and innovation, with the aim of maximising the overall performance of an organisation' (BS EN 12973: 2000).

−	An alternative functional definition can be 'Value Management (VM), is a systematic and structured process of team-based decision making. It aims to achieve best value for a project or process by defining those functions required to achieve the value objectives and delivering those functions at least cost (whole life cost or resource use), consistent with the required quality and performance' (Hamersley 2002).	+	An alternative functional definition can be 'Value Management (VM), is a systematic and structured process of team-based decision making. It aims to achieve best value for a project or process by defining those functions required to achieve the value objectives and delivering those functions at least cost (whole-life cost or resource use), consistent with the required quality and performance' (Hamersley 2002).

	The essential principles of VM place emphasis on it being a continuous process within a structured framework.		The essential principles of VM place emphasis on it being a continuous process within a structured framework.
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	Early pioneers of VM identified three factors influencing value:		Early pioneers of VM identified three factors influencing value:

−	=== Utility ===	+	== Utility ==

	Will it work effectively and do what it is expected to do? Most buildings are constructed in order to accommodate and support specific activities. The building will be judged a failure if it does not do this effectively. Thus, maximising the productivity of what is done is a key component of the utility value in many buildings.		Will it work effectively and do what it is expected to do? Most buildings are constructed in order to accommodate and support specific activities. The building will be judged a failure if it does not do this effectively. Thus, maximising the productivity of what is done is a key component of the utility value in many buildings.
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	A similar concept applies to civil structures such as roads and bridges. If a new power station is built, it must generate power reliably. In this case, the utility of the product is of primary importance, as is its ability to do so reliably. Thus, there may also be other secondary components of value.		A similar concept applies to civil structures such as roads and bridges. If a new power station is built, it must generate power reliably. In this case, the utility of the product is of primary importance, as is its ability to do so reliably. Thus, there may also be other secondary components of value.

−	=== Exchange ===	+	== Exchange ==

−	Can it be sold for a profit? The property and real estate market is driven by the concept of exchange value. Exchange value relies on the fact that parties involved in the exchange have different values. The concept of value drivers enables project teams to optimise value for their projects. Normally this will involve trade-offs (exchanges) between different stakeholders to obtain the optimum balance between their differing values.	+	Can it be sold for a profit? The property and real-estate market is driven by the concept of exchange value. Exchange value relies on the fact that parties involved in the exchange have different values. The concept of value drivers enables project teams to optimise value for their projects. Normally, this will involve trade-offs (exchanges) between different stakeholders to obtain the optimum balance between their differing values.

−	=== Esteem ===	+	== Esteem ==

	Will it convey status or provide a 'feel good' factor? Esteem is a primary value for structures that need to convey an image or otherwise contribute to their environment. For example, corporate headquarters must convey to the public and clients alike what the corporation is about – that it is successful, it cares about details and it cares about its customers and things that its customers care about.		Will it convey status or provide a 'feel good' factor? Esteem is a primary value for structures that need to convey an image or otherwise contribute to their environment. For example, corporate headquarters must convey to the public and clients alike what the corporation is about – that it is successful, it cares about details and it cares about its customers and things that its customers care about.
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	In addition, the building must work as a building (utility value) and it must be saleable as an exit strategy (exchange value), but the overriding importance is the esteem in which the outside world will hold the building and, by extension, its occupiers.		In addition, the building must work as a building (utility value) and it must be saleable as an exit strategy (exchange value), but the overriding importance is the esteem in which the outside world will hold the building and, by extension, its occupiers.

−	The relative importance of these three core types of value will vary depending on an individual’s perception of values.	+	The relative importance of these three core types of value will vary, depending on an individual’s perception of values.

	= Measuring value =		= Measuring value =

−	In order to ~~utilise~~ the full effectiveness of the VM process, it is important that a process is in place so that values can be quantified and measured. It is preferable to keep these measures objective and unambiguous. However, there may be instances where there is an unavoidable element of subjectivity. In such cases, the VM team should make every effort to build a consensus, for example, by taking a series of observations from a number of stakeholders or by undertaking a survey.	+	In order to use the full effectiveness of the VM process, it is important that a process is in place so that values can be quantified and measured. It is preferable to keep these measures objective and unambiguous. However, there may be instances where there is an unavoidable element of subjectivity. In such cases, the VM team should make every effort to build a consensus, for example, by taking a series of observations from a number of stakeholders or by undertaking a survey.

−	In the construction industry there are a number of key performance indicators (~~KPI's~~) that are commonly used. These KPIs include elements such as client satisfaction, defects, cost predictability, time predictability, safety ~~and so on~~. Most of the emphasis of these KPIs is on the process of delivering construction. By contrast, VM focuses on project outcomes, rather than the process for delivering project success. For this reason, the VM process ~~utilises~~ value drivers to quantify and measure value delivered by a project.	+	In the construction industry there are a number of key performance indicators (KPIs) that are commonly used. These KPIs include elements such as client satisfaction, defects, cost predictability, time predictability and safety. Most of the emphasis of these KPIs is on the process of delivering construction. By contrast, VM focuses on project outcomes, rather than the process for delivering project success. For this reason, the VM process uses value drivers to quantify and measure value delivered by a project.

	= Value drivers, value profile and value index =		= Value drivers, value profile and value index =
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	{\|		{\|
−	\|width="50%"\| VALUE DRIVER	+	\|width="50%"\|
−	\|width="50%"\| KEY PROMPT QUESTION	+	== VALUE DRIVER ==
		+	\|width="50%"\|
		+	== KEY PROMPT QUESTION ==
	\|-		\|-
	\| Enhance/achieve desired financial performance (of the structure)		\| Enhance/achieve desired financial performance (of the structure)
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	\|-		\|-
	\| Enhance the environment		\| Enhance the environment
−	\| Is the structure environment friendly? Is the structure built using the ethos of environmental sustainability?	+	\| Is the structure environment-friendly? Is the structure built using the ethos of environmental sustainability?
	\|-		\|-
	\| Comply with third-party constraints		\| Comply with third-party constraints
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	\|}		\|}

−	Assignment of quantitative measures (also known as setting metrics) to each individual value driver and agreeing performance ~~measure~~ (see the figure below) will enable the VM team to assess and quantify performance and thus generate the value index of the project.	+	Assignment of quantitative measures (also known as setting metrics) to each individual value driver and agreeing performance measures (see the figure below) will enable the VM team to assess and quantify performance and thus generate the value index of the project.

	[[File:Value_management_process.jpg\|link=File:Value_management_process.jpg]]		[[File:Value_management_process.jpg\|link=File:Value_management_process.jpg]]
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	{\|		{\|
−	\| VALUE DRIVER	+	\|width="20%"\|
−	\| IMPORTANCE WEIGHT (%)	+	=== VALUE DRIVER ===
−	\| METRIC	+	\|width="20%"\|
−	\| PERFORMANCE (1 – poor, 10 - excellent)	+	=== IMPORTANCE WEIGHT (%) ===
−	\| WEIGHTED VALUE SCORE	+	\|width="20%"\|
		+	=== METRIC ===
		+	\|width="20%"\|
		+	=== PERFORMANCE (1 – poor, 10 - excellent) ===
		+	\|width="20%"\|
		+	=== WEIGHTED VALUE SCORE ===
	\|-		\|-
	\| Financial		\| Financial
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	-----		-----
		+	= About this article =
		+
	The text in this article is based on VALUE MANAGEMENT IN CONSTRUCTION, by Saleem Akram, Andrzej Minasowicz, Bartosz Kostrzewa, Arnab Mukherjee and Piotr Nowak. The original manual was published in 2011. It was developed within the scope of the LdV program, project number: 2009-1-PL1-LEO05-05016 entitled “Common Learning Outcomes for European Managers in Construction”.		The text in this article is based on VALUE MANAGEMENT IN CONSTRUCTION, by Saleem Akram, Andrzej Minasowicz, Bartosz Kostrzewa, Arnab Mukherjee and Piotr Nowak. The original manual was published in 2011. It was developed within the scope of the LdV program, project number: 2009-1-PL1-LEO05-05016 entitled “Common Learning Outcomes for European Managers in Construction”.