Value Management In Small Construction Projects

Prepared by:
Muhammad Hamza (19-CE-48)
Muhammad Amir(19-CE-140)
Usama Mehmood(19-CE-180)
Nouman Ghafoor(19-CE-188)
Value Management
A systematic, multi-disciplinary effort directed toward analysing
the functions of projects for the purpose of achieving the best value
at the lowest lifecycle cost.
The engagement of project stakeholders to determine ‘value’ is
done through a series of well-timed workshops.
VM In Small Projects
Small projects are prone to face more challenges than larger ones in terms
of systematic management due to their inherent characteristics such as
tight schedules, limited costs, less staff involved etc . Hence a lack of
attentive management in small projects can easily lead to the cost
overruns and poor desirabilities. That’s why, VM is used as a precaution.
The Concepts Of Value Management

• Value Planning (VP) - apply VM

during the concept or planning phases
of the project.
• Value Engineering (VE) - apply VM
during the design or engineering
phases of the project.
• Value Analysis (VA) or Value
Reviewing (VR) - apply
retrospectively to completed projects
to analyze or to audit the project's
performance
AIM Of Applying VM
• Minimum resources to achieve project goals.
• Using least cost to provide the services in same quality.
• Team member easily participate.
• Provide best function at the lowest possible overall cost
• Enhancing the value money and return on investment of client,
financers,owners or sponsors of the project.
The VM Phases
• Information phase
All relevant information pertaining to the project is gathered from all
parties.
• Objectives phase
Using the data provided in the information stage as a platform, detailed
analysis of the project is undertaken.
• Functional analysis Phase
Functional analysis forces a broader and more comprehensive understanding
of the project by Stimulating intense discussion and by compelling the team
to view aspects they might not normally have considered.
• Creativity phase
Concentrating on the objectives/functions identified during the previous
phase, appropriate techniques are employed to assist the group to
generate alternative ideas of achieving the required outcomes.
• Evaluation phase
It is during this phase that detailed assessment of possible alternatives
identified during the creativity phase takes place. Ideas are examined
from a range of perspectives including capital cost, recurrent/
maintenance costs, impact on service delivery, aesthetics, functionality
and overall performance.
• Development phase
The ideas/alternatives identified in the evaluation phase are technically
developed and analyzed during the development phase by the
participants and/or members of the professional team.
• Reporting and recommendation phase
In this phase of the VM study the participants agree on the outcomes
and recommendations flowing from the study and identify action
necessary to keep the project on track and to meet key milestones. Each
recommendation is to be tested against the objectives determined
earlier.