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Question 01(a)

Value Management
Value Management can be identified as the process of achieving the desirable
balance between stakeholders resources and his requirements.

Australian and New Zealand Standard AZ/NZS 4183:1994 has defined VM as ,

a structured, and analytical process which seeks to achieve value for money
by providing all the necessary functions at the lowest total cost consistent with
the required levels of quality and performance.
According to Norton (1995:11, Value Management can be considered as ,
a systematic,multi - disciplinary effort directed towards analysing the functions of
projects for the purpose of achieving the best value at the lowest overall life cycle
Value Management is operated within an organized schedule of procedures.This
process allows to identify fuctional requirements and alternative solutions with their
associative costs which can be later developed to a strict timetable.
Value management is frequently conducted in the form of intensive workshops by a
team of experienced design team professionals acting as conslutants.
Upon the completion of the workshop a comprehensive report is produced which
includes recommendations for review and assessment by the client and his design
Dove, 1990 describes this kind of a value management exercise is operating in a
complementary role acts as a catalyst to savings and improved efficiency.
According to theory, value management can be conducted at any stage of the
design process. However Seely (1994) mentions that as a general rule earlier a
study is undertaken the more it will be in providing the opportunity to rationalize
design earlier, and it is believed that any change that will be done later stages of the
design process will significantly increase design/planning costs. To get the maximum
value management should be done at the earliest stages of a project, not only
introduced when problems arise. The value management process includes value
engineering, which is a more systematic approach to ensure that the specific
functions are satisfied to the required standard for the least cost. It assessed a
range of possible solutions against the values required by the customer.

Value Management is a team approach used to define the client's objectives and
ensure that the best value of any life solutions are selected to meet these
objectives. It is not necessarily about reducing costs.Therefore in practice, timing is

timing is critical and but it cannot be guaranteed that overall initial capital costs will

be reduced , however it should be stated that more efficient designed project will be
The three main stages of a construction project and application of value
management techniques are described below.
At the planning stage of development, there are additional benefits to be derived from a value
engineering workshop. An independent team may:
Review the program
Perform a functional analysis of the system
Get the definition owners / users of the value
Define the criteria and the key objectives of the project
Check / validate the proposed program
Examine the utility master plan options
Provide alternatives (area in square feet needs by function, contiguity solutions, etc.)
Check if the budget is sufficient for the expanded program
This is the step that most Value Management participants are used to being
involved where the design has at least made the schematic stage. Most government
agencies require at least a Value Management session at the design stage of
projects over a certain project cost. The main tool available to the Value
Management team is usually a workshop session of 40 hours (or less for complex
projects smaller or less).
The workshop is an opportunity to bring the design team and the client together to
consider the proposed solutions for the design, cost estimates and implementation
schedule proposed and the approach in order to set implement the best value for
money. The definition of what is a good value on a particular project will change
from client to client and project.
During the Construction phase value is still possible through the use of value
engineering change proposals (VECP). Contactors can be provided monetary
incentives to offer solutions that provide added value to the owner, and share the
financial benefits realized. It is clear that the owner should consider the proposals of
the contractor generated very carefully, in a life cycle perspective and a perspective
of responsibility. Team must be brought into the process of decision making to
accept the proposed amendment does not have a negative impact on the overall
operation of the design and construction. The evaluation of a VECP is treated
similarly to an order of modification under construction, with issues such as the
effects of timing and productivity planned with the savings generated by perceived

Question 02 (b)
During the portion of the actual workshop of the Value Management study, the five
steps in the job plan is followed as prescribed by SAVE International:
The VE job plan follows five key steps:
phase information
Speculation (Creative) Phase
Assessment (Analysis) Phase
Development phase (value management proposals)
Presentation Phase (Report / Oral presentation)
These five key steps are described as follows:
Information Phase
At early stages of Value Management, it is important to:

Understanding the context and decisions that influenced the development of

the design through a presentation of the formal design A / E


Analyze key functional issues governing the project. The functions of every
plant or system are the control elements in the set VE approach. This
procedure requires participants to think in terms of function, and the costs
and impacts associated with this function.


Define the objectives of the owner and the key criteria for the project.


Determine the definition of the value of the owner

Speculation (Creative) Phase

This step in the VE study involves a list of creative ideas.

The VE team thinks as many ways as possible to provide the necessary

function in the project areas at an initial cost or lower lifecycle representing
improved customer value.


Judgment of ideas is prohibited


The VE team is looking for the quantity and the association of ideas, which
will be screened in the next phase of the study.


Many children ideas in the creation phase is the result of work done in the
function analysis. This list may include ideas that can be further evaluated
and used in the design

Evaluation (Analysis) Phase

In this phase of the project, Value Management team with the client and / or user,


Defines the criteria to be used for evaluation

Analyzes and judges the ideas resulting from the creation of session. Ideas found
impractical or not worthy of further study are rejected. These ideas that represent the
greatest potential for cost savings and improved value are developed. A weighted
evaluation is applied in some cases to take account of other impacts that the costs (such
as planning impacts, aesthetics, etc.).

Development Phase
During the VE study of the development phase, most of the ideas are developed
into viable solutions. The development consists of
Description of the recommended design change
Descriptive evaluation of the advantages and disadvantages of the proposed
Comparison of costs and LCC calculations
Each recommendation is presented with a brief account of comparing the
original design method to the proposed amendment
Sketches and design calculations, where applicable, are also included in this
part of the study
Presentation Phase
The last phase of the VE Study is the presentation of the recommendations in the
form of a written report. A briefing/oral presentation of results is made to the Client
and Users, as well as the Design Team representatives. The recommendations, the
rationale that went into the development of each proposal and a summary of key
cost impacts are presented at that time so that a decision can be made as to which
Value Management proposals will be accepted for implementation and incorporation
into the design documents.
In addition to monetary benefits, a VE workshop provides a valuable opportunity for
key project participants to meet, then step aside and see the project from a
different perspective. The VE process thus produces the following benefits:

Opportunity to explore all possible alternatives


Project participants forces to deal with "value" and "function"


It helps to clarify the objectives of the project


Identifies and prioritizes goals of customer value


Implements proposals accepted in the design


It provides information on the study results

Question 02
In the construction sector, feasibility studies are carried out to determine whether
a company can take realistic and cost-effectively on a project. They analyze the
strengths and weaknesses of the company, and identify opportunities and threats in
the competitive environment, such as economic instability. These reports also
describe the materials, labor, and time required for the project, and rationally say
whether the company can meet those needs. Feasibility studies outlined the best
strategy and results that the company can offer customers.
Finally, they judge the probability of success and profits, and reach a conclusion on
whether the project will be financially viable and rewarding.
There are a number of main components included in the realization of a market
feasibility study and financial analysis for a complex of indoor water park or water
park project outdoors. The main components are listed below:

1. Area, Demographic, and Neighborhood Analysis

2. Site Review
3. Proposed Development Recommendations and Costs
4. Market Analysis
5. Proposed Development Usage and Pricing Analysis
6. Financial Analysis
7. Valuation Analysis
8. Comparison of Value Created to Projected Costs
It is also a feature of the construction industry that no two sites - and therefore no
two development projects - are the same. So these technical issues must be
addressed to a greater or lesser assess the development potential of all the
resources of the project.
It is no wonder then, technical issues tend to dominate when evaluate the potential
for development of a project in the process normally called "doing a feasibility
But the main purpose of a "feasibility study" is determined if an opportunity for
development makes good business sense, not only if technically possible.

Solving technical problems, it is often considered the main goal of a feasibility study, when in
fact these technical problems are the basis on which an asset and delivery business plan is built.
That does not matter that technical issues are important - they are a prerequisite for
demonstrating the viability of a project.

Therefore, the feasibility study process must demonstrate that not only They have been
satisfactorily addressed technical issues, but also that trade issues, broader economic and social
have been taken into account the development of a comprehensive business plan, which includes
a assessment of risk-return profile of the proposed development.

Question 03
Cost is defined in various ways. In the most general sense,cost: The monetary value of all goods
and services used for the purpose to perform an operation.
As regards the construction of buildings stakeholders, the owner, designer, contractor, user and
society have abide by cost limits, because of the different expectations objectives of participants.
In building construction projects, direct cost is often stressed and highlighted in the
estimation of costs and expenses.
Furthermore, investment decisions in building projects, assessment of investment
opportunities, calculation the price of the contractors, cost control during the design
decisions are related to estimating correct or nearly correct costs.
Process which Involved in estimating construction costs are tedious, repetitive and
activities of numerical analysis. Computers have been used to help estimate costs
nearly 40 years.
Recent developments in information and communications technology increasing
speed, productivity and
the accuracy of the estimated cost of construction and easily handle the following
1. Processing electronic bill-of-quantities (BoQ) either directly form digital CAD files
or paper-based documents through digitizers
2. The creation of computerized cost databases,
3. Setting up computer-aided cost estimation systems

Computer Aided costing systems can be classified into two groups:

systems used in the schematic design phase and used in the design of development stages and
construction documentation.
A computer aided cost estimating information systems used in Scheme design phases is
integrated CAD and packages that cost estimate have graphical user interfaces for the design and
development, in collaboration with Cost estimate.
Then, parametric systems in which it is assumed that if the ratio of the design variables and
construction costs are modeled mathematically by the analysis and recommendations can be
using given ratios. The third is those who benefit from recent developments in artificial field
intelligence and knowledge approach.
One of the systems used in design development and construction documentation
phases are grouped into spreadsheets applications in office automation software.
(MS Excel etc.)

with a wide range of built in functions and formulas, which, what if the analysis and many
graphical reporting facilities.
Addon integration for spreadsheets provides facilities for data transfer or commonly used CAD,
accounting, planning and estimating higher costs packets. In domestic applications cost estimate
based on expert programming database management systems (such as Lotus Notes,Oracle) are
used to develop other design and construction systems phase documentation. These are systems

that requires a lot of inputand a data structure in the company,and custom user interfaces
BIM allows visualization to facilitate the production of conceptual estimates (Matipa et al.,
2008) and funcion to automate the generation of quantities and measurements directly from a
(2008 Sabol) BIM model. Cartlidge (2009) noted that many programs are developed to estimate
accelerate work than the intensive traditional approach quantification works and help measure
from CAD drawings to enter the measurements to QTO
(Quantity Take Off) templates. The software is still to achieve a high yield from the selection of
necessary elements in the drawings and are still based on the manual operations (Autodesk,
2007; Jiang,2011)
This approach is associated with the use of specialized Quantity Take Off (QTO)
software, for example Autodesk QTO,Vico Office and Exactal CostX which transfer
BIM models and embedded information from design BIM tools on your system. Like
the previous approach, these tools can support both automated extraction and
manual By bringing features off. They can create visual diagrams while providing
visualization models so the surveyor can make the building components using
colors that can cross check bring and see what components have or have not been
included in the estimate (Eastman et al., 2011).
Articles and assemblies are linked and surveyors are able to add additional
annotations to
the model to clarify the conditions where necessary for the quanfication process.
The approach offers
a plus for surveyors to work QTO using familiar software without having to own one
in deep understanding of BIM design platforms.

Autodesk QTO
QTO Autodesk launched the first in 2007, is a cost estimation tool developed autonomous b
and the same software supplier and Revit to help appraisers and surveyors in quantifications and
cost estimates through the process collect and coordinate accurate 3D BIM design of both
traditional 2D environment (Autodesk 2008;Brisk 2008 ). according to Alexander (2010)
, Autodesk QTO emphasizes the simplicity of its interfaces that allow users to easily understand
and become familiar with the tool required to perform takeoff and cost estimates.
Exactal CostX
First product by a software based in Australia and developed in 2004, and was stated as a
powerful estimation tool that supports cost management by BIM to enable the full integration of
digital technology in 2D and 3Ddesign data with cost estimates (Reay 2008;Exactal 2010).
Day (2008) Explain CostX to capture BIM and extract information, object properties, dimensions
and descriptions etc; all on a single platform,including electronic Ic measures, spreadsheets and
CostX actually transfers the attributes of the object within BIM and 3D virtual model
of properties
databases and read this information similar to that found in the creation of BIM

software (Exactal 2010) and allows information that is attached to objects including
BIM naming conventions; for example, names, instances name of the type that are
grouped in the same hierarchy as in Revit. CostX intelligence also keeps the object
Dimension Properties to allow efficient 3D model links and population totals using
the cost estimation

CostX also allows users to filter, highlight, hide or reverse the layers in the model that the
appropriate focus only building element, all objects of the model or BIM combining several
components as shown in the figure below.
CostX allows adjustments for viewing mode BIM models, whether by cable, in the shade or
transparent. Also it further provides questioned how BIM control of his exceptional vision to the
user, as the cutting section through tutorials and model, actually, it shows the internal structure z.